SPX electronic trading

Discussion in 'Options' started by Surprise, Feb 25, 2013.

  1. Surprise

    Surprise

    How exactly it works ? let me explain : today i had a bid at 0.6 and there are others bidding with me as well but the 0.5 traded while the 0.6 bids still standing , could that be a leg volume , floor volume ?

    Thanks
     
  2. 1245

    1245

    They don't allow trade thoughs, so it must have been a late sale. The SPX book is not fully electronic. They give the crowd a 1st look,then to the electronic book. Complex orders also must trade with in the best bid/offer.
     
  3. can you direct route complex orders to an exchange and get better fills then "SMART" at interactive brokers?
     
  4. 1245

    1245

    You can enter complex orders without smart route, but it is difficult. At each leg they ask you are you sure you don't want to use smart route. Then, without smart route, your option fee will likely go up to $1/contract. As to if the execution will be better, SPX is only traded in CBOE. I'm not sure how a smart route will help for that symbol.
     
  5. Surprise

    Surprise

    A late sale you say , hmm i will take that , so the volume i see is for both the electronic book and the pit ? Thanks ...
     
  6. Surprise

    Surprise

    The real question here if i have a limit order at the bid when my order will be executed ? can other traders and customers trade at my bid ?
     
  7. Yes. But not below.
     
  8. 1245

    1245

    If your asking can market makers on the CBOE get a "match" with customer orders, I believe the answer is no. But other customer orders represented in the crowd by a broker can. So if the screen market is .60/.70, and your bidding .60 for 25 contracts and 100 trades, a few things might happen.

    -there could be options ahead on the book which come first
    -there could be a bid in the crowd with "parity" to you and the other bids.

    The electronic book only gets one match. each broker in the crowd representing a customer order gets a match. I'm not family with current rules on the CBOE and in that crowd, I traded on a different floor.

    If you see a trade through, you can request information from your broker on why a trade occurred at a lower price than your bid after your bid was in the trading pit. If that happened , you might be entitled to an execution.
     
  9. Surprise

    Surprise

    So basically all market orders entered into the electronic book will go to the pit first ?
     
  10. 1245

    1245

    Yes, in general. I've heard some brokers have been able to set up a direct link and by pass there own broker, but I don't know how they do that.
     
    #10     Feb 26, 2013