Do you know of any non-U.S. options that offer book priority to customers? The RUT seems to go a penny ahead of my bids and offers much more than they did in the past. What causes this? Who sees these penny denominated bids and offers? I don't. I'm locked into nickel trading like most others in the RUT.
You most likely are seeing one leg of a spread (spreads can trade at penny increments). There is PIM (price improve mechanism) on some exchanges (like the ISE) but that really hasn't caught on. My guess is spreads!
Yes, I'm pennied in the RUT most often on the ISE. For those penny trades that are not due to a spread, the PIM must be responsible. Can only market-makers see PIM bids and asks?
Please refer to the ISE rules: https://www.ise.com/assets/documents/OptionsExchange/legal/rules/rules.pdf pg 119/120. I do not know your specifics so I cannot comment.
I've traded DAX and OESX options like you (I'm from Spain) and I'm working ES options now. You can achieve nice trades in Globex ES options too, in an electronic environment. I think this is better from your european perspective. My question is about how do you think to edge your currency risk. Thanks in advance.
I have been watching RUT for approx. 2 months and a little bit of trading to get an idea of the execution quality. The execution quality is great (Butterflies being executed around midpoint) but if I look at the volume youâll see a lot of Iron Condor Traders trading this vehicle. For example, when just one week to go for the front month I see a lot of volume in the OTM calls and puts in the 2nd month (around 1x standard deviation). Is this true? Besides SPX I will also trade RUT (electronically) for more of my speculative part of my option portfolio. RUT has relative high volumes if you compare it with SPX so imo it is a market you canât ignore when trading US markets.
I don't. I have a EUR account and able to trade USD dominated products without switching EUR in to USD. Every month Profits or Losses in USD will be transformed back to EUR.
I have noticed that no one here has referred to NDX. I have found that it is fairly easy to filled at 5-10 cents off the mid. I don't have too much problem getting executed within a few minutes, usually less than 2, and I usually do between 5 and 10 contracts at a time. I don't think there would be much problem doing more contracts since volumes are usually pretty decent. I'm interested in how others have been doing with SPX and NDX. It seems to me that the SPX spreads are too wide for my taste.
i always get filled in between b & a. if i set the limit price aggressively, it takes a while for a fill and the market has to move toward the limit price, but if it's set conservatively it fills very quickly and the market doesn't have to move against me. i've never placed a market order or a limit order at the b/a, always somewhere in between.