This is NOT IB's fault. Don't you see? IB has always offered traders a good deal because they have to compete. The reason why the options exchanges are able to bring bs like this upon us is that they obviously don't have any competition. And they don't have any competition because they are buddies with a corrupt government. Once again, the solution for all this would be to enforce the US constitution. Maybe we can have another try at founding a truly free country: It appears to me that the constitution would be an excellent foundation IF it were enforced unconditionally, objectively, and at all times, in other words BY A COMPUTER! Seriously, all we need is an artificial intelligence who has NOT BEEN TRAINED BY HUMANS and is capable of understanding and applying the constitution. If we give that entity the power to veto any law other than the constitution itself and stop any unconstitutional practices perpetrated by the government or by anyone else, then we would have our Utopia. While I don't think anyone will ever succeed in making the world or even just a small country a nice place, it is now becoming clearer to me that I should try to create an artificial intelligence rather than have evil human children. Of course, if we ever did manage to create a paradise on earth, it would not last too long. I am sure someone would send a few stealth bombers there pretty soon to make sure that any weapons of mass destruction potentially contained there would no longer remain contained, but be blown up into the air by 2000-pound bombs and distributed into the atmosphere.
Plus they probably want to eliminate off-floor scalping of any kind. Again, someone should point out to the US options mafia that there will not be much profit left for anyone, especially the exchanges, if all that is left are market makers and institutional hedgers.
Can't blame IB, if theres a cancel fee every broker will pass it on in some way. I have used IB for 18 months for futures and stocks , it is the best company I have come across. Between the 1000 contract size always sitting on the bid / ask and the spreads which are crazy , I figure the CBOE wants less business, that must be their plan! I have never done many options trades and dont have a sophisticated knowledge of them, but when I see the above things , just tells me to stay away.
Thanks Def for the insight. IB does what it has to do. Even with the increased fees, you'd still have to work pretty hard to equal most other brokers fees. Obviously, there are intended behavioral modifications that the regulatory folks are trying to achieve. This should not change anyone's ability to be profitable, even without trying to game the system. Learn the new rules and work within the system. There's always a way to make money out there and I have no problem with IB passing on fees. I want them to be profitable. I would suggest that the moderator start deleting QDZ's posts. They are completely off-topic, derogatory and serve no useful purpose here.
Why not let him live? I think most of what he says is wrong and irrelevant, but I have no problem deciding that for myself. I wouldn't want a moderator to assist me in the decision process. There is a price to be paid for freedom of speech, and qdz's posts are part of that price.
While I don't like this change, it is understandable from IB's point of view. I too think the exchanges are attempting to change behavior and eliminate scalping. I can see this potentially reducing volume overall which isn't good. I also think it's a backdoor attempt to avoid linkage or the effects of linkage. I have some of the same questions raised previously concerning "credits" earned one day carrying forward. Hopefully too, these charges will be detailed in a monthly and annual statement for tax reasons. Do I understand this the way everyone else does? As I read it, if I purchase 10 contracts, I earn $2.50 credit against cancellation fee. Do I earn another $2.50 when closing the position? What about short sales?
There is no such a thing as to earn credits. As for now when the cancellation and modification on direct orders are charged, the so-called credit is only for waving the fee for the exact executed order, not deduction from previous cancellation or accumulation for further cancellation. Example: Buy 1 XYZAB P0 executed +commissions no credit what-so-ever Buy 1 XYZAB P modify to Buy 1 XYZAB P1 +cancellation fee modify to Buy 1 XYZAB P2 +cancellation fee modify to Buy 1 XYZAB P3 +cancellation fee executed +commissions -cancellation fee Buy 1 XYZAB P4 modify to Buy 1 XYZAB P4 +cancellation fee modify to Buy 1 XYZAB P5 +cancellation fee .... modify to Buy 1 XYZAB Pn +cancellation fee executed +commission -cancellation fee Buy 1 XYZAB Px executed +commissions no credit what-so-ever Total = 4*commission + (N-2)*cancellation fee
QDZ3-2-QDZ; It's truly amazing that you have the answers to questions that DEF does not. Especially since you are not an IB customer. Perhaps you are an insider at Timber Hill or on intimate terms with IB management, oh, but that would make you a greedy manipulator dedicated to illegal activities.