HUGE difference betwenn institutional and retail pricing

Discussion in 'Trading' started by petediddy, Sep 8, 2005.

  1. petediddy


    How do retail brokers get away with charging $1 and more per contract in options, when in reality instituions in many cases pay 1/4 of that price????
  2. Well, apparently there is a $1 cancel fee from the exchanges. IF the retail trader places and cancels 5 orders in a day, that is $5 down the drain with no fills. Plus the clearing costs for retail may be higher? Also have to cover costs of insurance on retail accounts (CIPF in Canada and SIPCin USA). A few thoughts.

    Plus size! Size matters lol