My knowledge is limited on that. It seems that you can talk to your broker and ask the same question whether you have to register or not and what happens if you don't and how it will affect your tradings in terms of commissions , data feed registrations,.... after .you sign up
Ah, got it. I stand corrected. So you would, indeed, multiply by the underlying's price in the formula.
Here is an SEC comment Establishing a Registration Framework for Dealers and Major Participants in the Derivatives Market http://www.sec.gov/news/statement/establishing-a-registration-framework-for-dealers.html
I anticipate running into the "large trader 13h" requirement as well due to many scalping trades - I am currently trading as an individual - would be advisable to trade via a LLC or s corp? can "large traders" expect more IRS audits etc? any downside for being a registered a large trader (besides the paperwork)?
I'm not sure why the larger trader rule would define why you would choose to be an individual trader or use an entity. They are independent decisions that are unrelated. When I was a full time trader, I choose a single member LLC to protect my assets outside the LLC, give me the opportunity to create a profit sharing plan and more easily right off expenses of the business. Bob