Penny Increments on Options in the Future?

Discussion in 'Options' started by aeliodon, Jan 4, 2007.

  1. I want to know why options don't trade in penny increments? It seems that options that trade in penny increments would be a joy to trade. Tons of traders would start trading options so now why would the options exchanges mandate .05 spreads, it seems against their self interest.
    Now I know IB has a penny increment program, but I think its in internal thing - ie if I post a bid at .37 then only other IB users can see that bid - its not posted on all the exchanges (am I right on this?).
  2. MTE


    You may wanna catch up on the industry news. The pilot program for penny increments starts mid-Jan and will run for 6 months.
  3. leonnis


    you can use pennys at TOS(my broker) and IB that i know of.
  4. MTE


    That's true, but that's for spreads not individual options. The pilot program is for individual options to be quoted in pennies.
  5. IBsoft

    IBsoft Interactive Brokers

    IB does individual options in pennies.
  6. MTE


    Right. Anyway, my point is that it is broker specific not industry-wide.