the pressure's on... with the chop, i'm pissing away more and more money each day on clearing, and commissions are having a much bigger effect on my P&L than ever before. fees are the same as they were when the VIX was at 50, and this is bullshit. it's time for clearing to come down. the business just might stay alive if it does...
This is the kind of market where all the marginal players are knocked out of the market. Only the strong survive.
blah blah blahhhhh, blah blah blah blah. lower commissions = i keep more, i stay trading longer. and i take more risks knowing that my expenses are lower, which means i trade more shares. then over the long run, they collect fees from my longer career and bigger size. bigger size means bigger volume for all of us. i mean, let's be real -- it's getting extremely tough to make what any of us would consider a "decent" living.
I apologize for ignorance but what exactly does a clearing firm do? TIA (as opposed to a broker or introducing broker) post script: what I mean is, what exact function does it fulfil? a broker acts as an intermediary to transmit orders to the markets from customers. What does a clearing firm do? TIA
If the clearing firms lower their rates to the brokers, there will be a bigger margin. Hence, they have more room to work with the traders.
bungrider, you may be better off starting a public relations campaign to bring some new sucker money into the pool, since that's where you normally extract the easy money from. Can't make no big $$$ trading against other sharpshooters. That's why the options and futures markets spend so much money on PR and 'education'. Fresh meat = $$$$$$$$$$$
Hey if VIX and general volitility were tied to clearing, you'd have been paying $100 a trade 3 years ago