IB Quits options game!

Discussion in 'Wall St. News' started by SoesWasBetter, Mar 8, 2017.

  1. JSOP

    JSOP

    Well it's ALWAYS more profitable trading against your clients that's why retail forex is littered with bucket shops. I just can't believe Options with everything supposed to be traded on central exchanges are still resorting to bucket shop market-makings.
     
    #21     Mar 8, 2017
    water7 likes this.
  2. Yes, I get it, that's what it says about you. A master of subtle humor:rolleyes:

    You never can tell on the inet, I mean I just had someone ask me if I was referring to a 2010 article as news.
     
    #22     Mar 8, 2017
  3. I think the problem goes deeper. Liquid options are a penny wide and where's the edge there? Illiquid ones are near impossible to trade when you NEED to.
     
    #23     Mar 8, 2017
  4. zdreg

    zdreg

    I see. you are probably in favor of going to nickel increments per SEC experiments in certain stocks. what has been your experience?
     
    #24     Mar 8, 2017
  5. Ryan81

    Ryan81

    I trade a lot of equity options... I'm wondering what this will do to the liquidity of the options I trade.
     
    #25     Mar 8, 2017
  6. ajacobson

    ajacobson

    All trading occurs on exchanges. What will be interesting to see is if the books sell for anything.
    This is going to be very tough on places like Box where Timber is really a big part of the MM community
     
    #26     Mar 8, 2017
  7. Robert Morse

    Robert Morse Sponsor

    I expect you will not notice any difference.
     
    #27     Mar 8, 2017
    janny and Ryan81 like this.
  8. Not really asking for nickels in the options , just saying that the kind of edge that was available years ago is pretty much gone in everything. And trading automated is no edge at all , where it used to be.

    IB lobbied for years to give MM's some special break or hinder those who just leech off the market with no obligations, but it never happened.
     
    #28     Mar 8, 2017
  9. zdreg

    zdreg

    why? Timber has deep pockets which other firms don't have. they will be missed.
     
    #29     Mar 8, 2017
  10. Robert Morse

    Robert Morse Sponsor

    I agree. The big issue is the fragmentation created from the 15 option exchanges and the number of contracts that are crossed without price discovery. The cost of making markets on every exchange to have access to all the order flow, still does not provide you access to that flow because of directed and crossed orders.
     
    #30     Mar 8, 2017
    water7 likes this.