guess it's a no no in US listed mkts In some cases, the executing broker may have sufficient order flow from its clients that it is able, where permitted by law, to execute client orders internally by matching a buy-side order from one client with a sell-side order from another client or vice versa. Internal execution permits the broker to work an orderâmeaning that it holds the order while it seeks out one or more orders on the other side that would result in a match on terms more favorable than those available when the order was initially receivedâand thus to achieve better pricing for the client than if it simply routed the order to the exchange for matching in an automated execution system. We refer to this practice as internal agency execution. In cases where the client demands immediate execution, in contrast, the broker may, where permitted by law, take the other side of the trade for its own account while entering into an offsetting trade with another party relatively quickly, either internally with another client or externally with a market participant. We refer to this practice as internal matched-principal execution. By executing on a matched-principal basis, the broker limits its exposure to changes in market prices to a transitory, usually brief period while it finds an offsetting trade. Brokers generally earn higher profits per trade when they execute client orders on a matched-principal basis than on an agency basis. While current laws and regulations generally do not permit matched-principal execution in the U.S. listed markets, we believe that matched-principal execution will become more prevalent in European listed markets due to regulatory changes in that region. Matched-principal execution of client orders is permitted and more common in the OTC markets, where trading is conducted primarily on a principal-to-principal basis.
What sources do you read and get your research from? Do you just surf around the internet until you find something or do you subscribe to newsletter services?
i subscribe to agdayta.com and mrci.com The free sites that I like are barchart.com and futuresource.com Tradingcharts.com isn't too bad. agdayta is about 500 a year but totally worth it and mrci.com go try it for two weeks, it literally will pay for itself. does anybody else know of any good sites
Criv I totally know what you mean on blowouts, my worst loss ever camew when I had sold about 80 or 90 naked calls on march chi wheat in december or so, well you probably remember what happened to march wheat!! That was a bad bad week, had I stayed in the trade a million dollar margin call would have ensued! Interestingly though, I just went long a bunch of wheat contracts when it had those crazy days and I ended up making it all back in about two months. So I learned my lesson on that one. The margin calls I was getting were ridiculous even before that. It was stressful haha! Anyways yeah man those pricks in the order desk esp. in the options trades I can guarantee that they arb. the order flow. My guys are located in Chicago and so is cbot and cme. I guarantee those desk weasels squeeze everyone they can for a couple bucks everyday. It is alot harder on liquid markets like corn and stuff but those option plays that you do, sad to say but you get squeezed. You say you mainly trade for the intellectual reasons; do you have another job?
deliveries start friday on july rolling heavily into sep it appears. read on futuresource.com that there is alot of producer selling at 142.00. that level is key for alot of reasons. My charts show slow Stoch. are now overbought, but that doesn't mean a whole lot. still hugging that top bollinger band. liking my shorts here will add more
hey riv it seems like these brokerage houses are like bookies. I never knew that when I place a trade they lay off on the other side. Is that what I'm reading? Would they do that for safety or what?
Trying to get some 130/120 sep put spreads in coffee for 2.50. Locals got a .40 spread in that trade so I don't want to pay up for it. Hopefully coffee will pop here and I can get filled.