no, I don't think the uptick rule will ever go away. It's been there ever since before I was born and it's there for a good reason. In order to have eminis to trade, you need to have an underlying index of stocks which need to be in business to issue stock and they can't be in bussiness if their stock is trading at zero. So somebody a long time ago figured out the best way to trade is to use e mini and for that we need an uptick rule. Thanks guys, on behalf of all futures traders and the 500 companies in the index, I would like to thank you for your continued support. Keep up the good work. Why do you think they call them "prop firms"?
It would be nice if a poll like this one would begin with an explanation of the thing being polled about. A couple different explanations of bullets were offered after, and not by the original poster of the poll. Why is there an uptick rule It seems the need for bullets is created by the Uptick rule. What is it and more importantly why does it exist. If there's a basic flaw to the uptick rule, I think it would be more worthwhile to make an organized effort to repeal it rather than pushing to get bullets allowed.
Look at page 2 of this thread where I give a link to another thread where this question has been answered. I agree with you though that "tightning" one's posts would make this a better site for some. When I posed the question, I was being self-serving and just wanted an answer [hehe, the right one.] nitro
So, you're buying shares of a stock and also buying a put option on that stock. And what you want is IB to offer this as a specified order type, rather than have to order each part of it individually? And all of this simply because the uptick rule won't allow us to short NYSE stocks much of the time?
You are oversimpifying it. 1) Legging into a bullet is a waste of time, and electronic bullet takes about 1 second or less to get 2) I don't want to pay the spread on the option on the way in. A broker just charges .01 - .02 per share on bullets. 3) The margin requirments on a bullet are trivial WHEN IT IS SUPPORTED BY THE BROKERAGE. Also, read the experience I had in the link I gave on just that on my EDS "bullet" when it comes to maintaining an married put with the stock tanking. 4) The bullets expire automatically - there is nothing to do at the end of the day. If I do them by hand, I have to pay the spread on the way out again. You are correct about the uptik rule - that is all they are meant to solve/get around. nitro
PointDirex now offers bullets at .0075 per share. They are now fully automated within the software. Most softwares you have to either call in or use a different software to get access bullets. Platinum has hot keys for bullets, so with one key stroke you can get bullets with instant confirmation.
Aren't these the guys who closed shop for about a month without any notice? I wouldn't trade there if the bullets were free.
They had a data center move which caused the problem of being closed for 2 weeks. This was the same time WCOM was having their problems. As you may know, All nasdaq lines go thru WCOM. Because of the that they were left at the mercy of the telecom providers which caused the delay eventhough they had all confimations were given to them from the telecom providers that everything was ready to go. I have been trading with them for over a year and never had a downtime with them, except when they had a move.