Orders Tied To The Bid/Ask

Discussion in 'Order Execution' started by optionstrader2022, May 8, 2024.

  1. 2rosy

    2rosy

    390 orders a day makes someone professional? CXL REPLACE isnt a separate order in broker dealer land. I never knew there was retail priority other than soes and rais
     
    #21     May 9, 2024
  2. Robert Morse

    Robert Morse Sponsor

    Regulatory Circular RG16-064 attached. If you cancel-replace, each time you enter an order (The replace) it counts. If your broker has an option algo that is sending child orders out, but you enter one order, you need to ask your broker how they count that. It might have one order ticket assigned or hundreds.

     
    #22     May 9, 2024
  3. 2rosy

    2rosy

    never knew. every place I worked we cxlreplace all the time. Only had issues with cme
     
    #23     May 9, 2024
  4. Robert Morse

    Robert Morse Sponsor

    This rule does not apply to Options on futures traded on the CME. The CME has different rules.
     
    #24     May 9, 2024
  5. FSU

    FSU

    Anyone wondering how bad it is to exceed the 390 average in options, I can tell you, from experience, it is bad. Very Bad.
    You will be designated a Pro Customer for the next quarter. You will lose customer priority. You will pay higher exchange fees. And worst of all, MM's will not want to trade with you. They can see this designation in your order. Not necessarily an issue trading a very liquid ticker and taking out an offer/bid but when I was putting spread orders in less liquid tickers, they had no interest in trading with me, at almost any price.

    Also, some brokers may not want you as a customer.
     
    #25     May 9, 2024
    Occam likes this.