options

RogerM

Established member
752 6
stevet - trading price inefficiencies is clearly one of your intraday strategies. Care to explain how you identify this type of trade?
 

stevet

Established member
917 5
futures indicies are based on the underlying indicie, and either follow the underlying or lead the underlying, but ultimately are bought and sold between traders or arbs

options though are based on the underlying stock, but the trading tends to be with marketmakers,who dont seek to profit on outright positons, but make their money on the spread, so inbalances in supply and demand of both the option and the underlying can cause short term aberations in the pricing
 

blash

Active member
111 0
stevet,

What is considered as 'short term' for this style of trading.

A few secounds or minutes?
 

stevet

Established member
917 5
well - minutes or hours- just depends on time of day, volatilty of the market

seconds - i wish - but the rules are all on the exchanges side and they can hold your order as long as they want and even just ignore your order but still hang on to it - u want to try it when a share is getting dumped by the specialists at the nyse and then the option market makers have you by the short and curlies
 
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