Direct access options broker

This is a discussion on Direct access options broker within the Brokerages forums, part of the Commercial category; Originally Posted by A Dashing Blade There was no sarcasm intended, it was a genuine question. Gotta link to your ...

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Old Oct 14, 2005, 1:44pm   #73
Joined Jan 2005
Quote:
Originally Posted by A Dashing Blade
There was no sarcasm intended, it was a genuine question.
Gotta link to your point 4?
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Dash Bld,
Yes, i can.
Read post 13 and post 44 carefully.!!

Can i just add that if you or any person dont meet their [my brokers] criteria they will not allow you to trade short puts.
If a client has been approved to trade short puts and CANT meet the dead line to cover margin costs [3 days] they would not allow you to trade short puts for a length of time [perhaps 6 months? not sure] If the broker breaks these rules and client fails to meet margin calls within 3 days? the brokers will face/risk being fined. Now to clarify! i have always meet those conditions to clear the margin calls within 3 days.

Some criteria they impose is NOT by the fsa! thats to the discretion of that particular broker!
Most novices get turned away. Why? you will need to ask them why.
My guess would be that they dont want to have rogue traders and send the company bust.
I have assets and they know that i pose a small risk to them and a big risk to my assets. Now, this is their choice of practice/rules and if people dont like them they go elsewhere where the criteria is dffrt!

Would you like to make comments on posts 30, 39, 48, 54, and yet i have not seen ONE ounce of gratitude for my efforts and time to correct you on your errors or in educating you on post 30 and no apologies for the sarcasm in your post too.[30]

Bull
johnc1412@hotmail.com

Last edited by bulldozer; Oct 14, 2005 at 1:51pm.
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Old Oct 14, 2005, 3:36pm   #74
 
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Ha ha ha ha ha ha ha!

Slippy slippy Bull! But hey, it's Friday afternoon!

As I said, my comment about closing short puts out was the musings of someone who hasn't been involved in private client option business for 15 years., hence my "er, is this possible? " caveat.

Since you took it as an statement of fact (as a result of my innaccurate wording) then let me reassure you that I recognise it to be wrong.

However, I'm afraid that you are still refusing to answer direct questions regarding

a) your views as a trader (rather then a client) on a "finite upside, unlimited downside" trade which is what your broker is effectively taking on when they grant you a 3 day rule.
Recourse to an argument along the lines of "I've signed the paperwork stating that I have X amount of assets" is no argument remember because people sometimes don't tell the truth!

b) whether or not, in the small print of your client agreement letter this 3 day rule actually exists.

Please note that there is no sarcasm intended at all in this post, it is a genuine apology and two genuine questions the first to which I'd genuinely like to hear you view and the second to which I'm expecting like a boolean answer.
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Old Oct 14, 2005, 5:12pm   #75
Joined Jan 2005
Quote:
Originally Posted by A Dashing Blade
Ha ha ha ha ha ha ha!

Slippy slippy Bull! But hey, it's Friday afternoon!

As I said, my comment about closing short puts out was the musings of someone who hasn't been involved in private client option business for 15 years., hence my "er, is this possible? " caveat.

Since you took it as an statement of fact (as a result of my innaccurate wording) then let me reassure you that I recognise it to be wrong.

However, I'm afraid that you are still refusing to answer direct questions regarding

a) your views as a trader (rather then a client) on a "finite upside, unlimited downside" trade which is what your broker is effectively taking on when they grant you a 3 day rule.
Recourse to an argument along the lines of "I've signed the paperwork stating that I have X amount of assets" is no argument remember because people sometimes don't tell the truth!

b) whether or not, in the small print of your client agreement letter this 3 day rule actually exists.

Please note that there is no sarcasm intended at all in this post, it is a genuine apology and two genuine questions the first to which I'd genuinely like to hear you view and the second to which I'm expecting like a boolean answer.
================================================== ===========

DB,

I'm not asking you do believe me! You can believe what you want!
I'm stating what the facts are in my particular case wiv my broker.

The moment you put on the FIRST LARGE position! The manager rings you with a series of questions and ask's for some evidence to prove your assets. Normally a fax from your accountant, on reciept of that fax and they are satisfied with your income and assets they then give the green light for the trade to proceed.

As i said b4! If you dont measure up to their criteria you dont get signed up! its that simple! Theres many questions you need to get right b4 your allowed to trade short puts on ftse. Some of the questions are on margins:> How do you reduce margin calls? give at least 2 ways.
Give at least ONE good/best way to hedge short put. How are you able to raise cleared funds to meet margin calls within 3 days and this has to be endorced by accountant and also 3 months banks statements from savings & cheque accounts and letter from bank manager to say how much bridging loan are they prepared to give and if they can do it in 3 days. My assets are valued by the bank valuer and not my choice of valuer. If the bank cant give their undertaking? I would not be allowed to trade shrt puts above a certain level.

Concerning the 3 day rules? Ring any top broker in London and ask them this question:- Is it possible to have 3 days grace on margin-call if my account is above £100K and been with your firm more than 6 months trading actively. and that you know 2 ways to hedge a short put and 2 ways to reduce margin-call by adjusting positions. [You can add the bridging loan avialabilty if he says no.]

plz come back to this forum and tells us the replies.


Bull

johnc1412@hotmail.com
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Old Oct 14, 2005, 5:23pm   #76
 
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Time to draw a line under this thread.

For the third and final time Bulldozer, is this 3 day rule written into your client agreement letter?
ie is it a legal obligation for your broker to provide you with this facility?

Simple yes or no required. Nothing more, nothing less.

No sarcasm intended, this is a genuine query.

Nice weekend.
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Old Oct 14, 2005, 6:05pm   #77
Joined Jan 2005
Quote:
Originally Posted by A Dashing Blade
Time to draw a line under this thread.

For the third and final time Bulldozer, is this 3 day rule written into your client agreement letter?
ie is it a legal obligation for your broker to provide you with this facility?

Simple yes or no required. Nothing more, nothing less.

No sarcasm intended, this is a genuine query.

Nice weekend.
================================================== ==============

DB,
Sorry i thought you were initially doubting my word on the three day rule?[on previous post]

1. YES, the 3 day grace rule is written in my agreement! but its NOT available to all clients.

2. Its NOT a legal obligation to give the 3 days grace rule! its at their discretion.

3. The 3 days grace rule only breaches the FSA, If i fail to remove the margin-call within the 3 days of the agreement.

4. They have also offered me a FIVE days grace perriod if i want new agreements drawn up. I did not need it cause i always managed within 3 days.


If your still in doubt? and you fink I'm talking nonsense?

Check out page 10 post 91 on link below:

http://www.trade2win.com/boards/show...&page=10&pp=10


Happy weekend to all members and lurkers too! I hope youv all enjoyed this weeks show? And also the free advice! I hope my posts has made someone a bit wiser. I know Dash-blade has learned at least 2 important things this week!

I leave you all [audience] wiv one question over the weekend: Who is the most POWERFUL man on this planet? [ clue its NOT GW Bush, or Bin Ladden or Tony B. so who can he BE?
And NO its NOT the Pope either! and its Not the dynamic duo>> Profitaker or Pitscum or the other dynamic duo Mr Def -Mr Peto And NO he does NOT post on these boards. Its NOT Bulldozer either.

Bull

johnc1412@hotmail.com

Last edited by bulldozer; Oct 14, 2005 at 9:37pm.
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Old Oct 22, 2005, 10:37pm   #78
Joined Jul 2004
Quote:
Originally Posted by def
how could i possibly answer that question w/o knowing your position or capital in the account.

how about I ask you, when the day comes, and it will come if you continue to sell naked puts, and your account blows out and your broker comes knocking on your door, will you pay up?

Thankyou, for sharing your knowledge about selling naked put options. For me personally, your comments are educational and an eye opener.
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Old Jan 5, 2006, 8:52am   #79
Joined Aug 2004
Quote:
Originally Posted by bulldozer
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We pay Brokers to give us a service ie to open trade and to close trades but NOT to interfere with our trades! there are brokers that will NOT interfere with trades! they give you 1-5 days grace for you to put hedge in place or adjust positions. Do you think its right NOT to make people AWARE of these choices?
Bull
Bull:

As a sidebar to your quote above {there are brokers that will NOT interfere with trades! }: Does/can your broker take the other side of your trades? Is this something that you look for when you're chosing a broker?

Thanks for your thoughts,

urep
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