No, spread trading is not arbitrage.
For what it's worth Nitro is 100% correct. Arbitrage trading is what floor traders do, it is virtually impossible to trade arbitrage for a retail...
ktrader, I didn't say you cannot simulate it, I said you cannot simulate it EXACTLY. In other words, there're other factors that need to be...
You cannot simulate VIX futures trades with SPY/ES options exactly, but since VIX is the implied volatility of SPX options you could buy straddles...
See my reply in the previous thread. You'll have to ask IB about that.
"Converted" is not the term that is used, the correct term to use is you got assigned on your short leg. What do you mean by "normal"? It happens...
And you think that going with a small broker will solve that problem!?:confused: I can assure you that no broker is perfect, otherwise everyone...
In other words, you don't need a PhD in Maths/Stats, which is exactly what I said. :cool:
First of all, Black-Scholes assumes log-normal probability distribution, which does not hold in reality, so even if you can derive the B-S in your...
Mlipsky, Everything you said applies to equity and index options, but not to futures options. FredBloggs was asking about GLOBEX options, which...
There's an obvious limitation of this study. That is, it considers only options that are held to expiry, which may only represent a small portion...
don't trade the Euro, but just a guess - US Trade Balance numbers were released at 8:30 am ET.
10:00 am ET
:) :D
You have kind of answered your own question. If the market reverses at your stop then once you have decided on your stop, just move it a bit...
I saw it too. VIX measures the IV of SPX options so if the options' IV spiked up for some reason, VIX would reflect that. It might've been just...
CME uses SPAN margining so you should look under SPAN on their website.
Unfortunately, there's no way of knowing what the other person was thinking or doing when he/she exercised those calls early and handed over some...
I agree, no book will ever make you a profitable trader, but you still need to start somewhere especially if you're a newbie. So I suggest you...
Everyone's goal here is to make money. I doubt that some peolpe actually would like to lose money.:D If that's the only book you've read on...
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