Just my two cents. Clearly at TT you knew (or should have known) what you were doing. Brokers do not want the hassle of clients being uncovered. In any possible situation...Especially if that client does not have hundreds of thousands of dollars in their account. It takes time and money away from customer service department to handle the less profitable clients...Closing and paperwork. You were warned...You did not listen. As others have said concerning the opening of this thread, you were going up against the MM...Not an individual on the other side. The market moved and you got filled (when it happened). I have had accounts at both Schwab and Fidelity for over 20 years. Owned Schwab stock for many many years. You are not their preferred client. Their preferred client has a few hundred thousand (or a few million) in an account...A couple other IRAs (or Roths). The client will call in once or twice a year with a question...Hand holding. They are NOT doing complex trading... Assets under management...It's the biggest term they require. You call them to many times (with a small amount of assets) Schwab will mark you (frowny face)...At some point they will drop you too!! Read, study, understand...By asking this questions (plus the TT issue) shows you do not have a firm grasp of the markets and trading. For what it's worth... PS One of the reasons Schwab may be putting up with you is they are hoping (waiting) for someone in your family to die!! They want to see generation wealth pass down. You suddenly have $$ put into your account and they perk up. From AI... Generational wealth transfer refers to the movement of assets and financial resources from one generation to the next, typically through inheritance or gifting. This process can include various forms of wealth, such as cash, investments, real estate, and even family businesses. The "Great Wealth Transfer" specifically refers to the significant amount of wealth being passed down from baby boomers to their children and grandchildren.
How do we, retail traders, know that the bids and asks are from the same MM? If one MM has a slightly higher bid, and another has a slightly lower ask, the mid could be in a place where neither think there is an edge.
use the nearby strikes to interpolate the strike you are interested in. it’s a lot of work and likely not to be a significant issue in a liquid name like the SPX. In some single stocks where it could be, you can generally tell by eyeballing it. where it becomes significant is where the bid is way low or the ask is way high.
Yes.. as a general rule... trader's "mid bid" gets filled when it becomes the market's ask... unless the MM decides to fill it sooner. Placing order mid-way between the bid and ask risks that you don't get filled. If trader has high conviction, shouldn't be "penny wise and pound foolish".
It's NBBO, dude. OPRA. If you're sitting at mid and filled then 1) spot moved against you or 2), the MMer fills bc it improves their book.