How much money is needed to start as a market maker in options on the floor ? The reason I'm asking is because I am sitting a lot on the bid and the ask of options and try to hedge my risk away in the underlying, but now with the new rule change at IB for canceling orders I think my way of trading will be finished and I'm looking for a solution to this problem.
<I am sitting a lot on the bid and the ask of options > that is not allowed , to be doing both at the same time in the same account with IB
I don't do both at the same time, but I can be at one side of the market changing my quotes as the underlying changes.
I have observed that kind of behavior a lot. But it is pretty obvious, even if you don't know the people behind it: If the quote is 1.10 x 1.20 and without a move in the underlying or futures someone suddely bids 1.20 for 200 contracts on an exchange other than where the 100 are being offered at 1.20, you have to wonder about his motivation.