options - why can't i have bid and offer on the same contract?

Discussion in 'Options' started by chewbacca, Feb 20, 2009.

  1. is this just an IB restriction.....what is the reason?
     
  2. again.......if cboe wants option volumes to increase then they need to 1 allow penny pricing 2 allow the ability to bid/offer on same contract and 3 remove the cancellation fees........is there any chance this will ever happen?
     
  3. they say it's because it makes you a market maker, but there are other brokerages that allow it so apparently it's not an sec/cboe restriction.
     
  4. so IB is just being a bitch.....protecting its MM business
     
  5. i would like to see the cboe at least try out penny pricing. there's some debate about the effect of penny pricing on liquidity of low-volume options such as deep itm/otm oex & spx (due to the reduced number of price points). one solution would be to institute a mixed system where near-atm options are in pennies and deep otm and itm options are in nickels
     
  6. I have NEVER seen a broker allow anyone to do this.

    Can you name one or two? Thanks.

    Mark
     
  7. It's not likely that they are concerned with the competition from an individual investor - regardless of the number of contracts you want to trade.

    When they fill your order, they collect a commission. Profit with zero risk. That's better that the possibility of losing out on a trade because you got in the way.

    Mark
     
  8. rluser

    rluser

    Unless I misread, TOS allows this if you specifically request it.
     
  9. You can still do it, just not the way you conceive of it. PM me if you want me to tell you how to do it.
     
  10. No need to PM. I'll share.

    I do it frequently by using two different accounts.

    But that's not the same thing as the broker allowing it to be done in the same account.

    Mark
     
    #10     Feb 20, 2009