A cancellation fee. Because bandwidth costs money. I've seen back month options flicker all day long - with no trades(!), one exchange improving the price of another, and backing off. Repeat to infinity. Then public customers send a solitary ping, manually with a mouse click, and are charged a fee.
Today is my first day trying these suckers. I havenât received a cancelation fee email yet and have canceled quite a few orders. Pretty poor volumes but this is how the weeklies startetd too.
Cancellation fees come from the exchange to the broker after a certain number of cancels occur. This is done more to try and stop public customer "market making" than for bandwidth reasons. IB is the only firm I know of that charge the customer this fee.
Agreed, but it has been my experience that IB doesnât charge them on index option products so it wouldnât really make sense that they would be showing up on SPXPM.
I did some trades with the SPXPM options and recognized that for the same strategy as with SPX options for the SPXPMs is much more margin required (portfolio margin). Whats the reason for that? thanks
I haven't noticed this, although I only have some small positions on. I also have a PM account. Our back office tells me that SPXPM is hedged against other similar products as well for PM purposes. Next time a have a more substantial position on I will check the margin.
can someone explain the difference please spx : Regular, 3rd Friday SPX options and SPX Quarterlys are traded primarily in open outcry. SPX Weeklys are traded on Hybrid. spxpm : Electronic . spy : Hybrid . http://www.c2exchange.com/micro/SPXpm/default.aspx I am a futures trader so i am a bit confused , cant you trade the regular SPX options electronically ?