2k contracts is massive, at least for the average retail individual. -- If you traded that size consistently for a month or two or three or four...you could retire...assuming those are winning trades. You're from Albuquerque, New Mexico...home of Breaking Bad, Walter White...Heisenberg...Time to Cook, That TV drama show started right around when I started trading,
depends on what you trade, if its SPX or some other liquid instrument its not an issue exiting a position
Thank you all for the feedback. It sounds like it's not an issue at low volume of 100. But what happens once volume reaches 1000 or 10,000, or 100,000? At what point filling in an order in a retail broker trading platform is not going to be sufficient anymore, and a different order type is needed (or different brokerage?)
Retail is built for a 10 up market on most of the venues. The quest becomes how to use multiple list to my advantage and is my broker enabled to access that liquidity. Liquidity has a price - how can I play it to my best interest and least friction.
Since my trades were mostly on illiquid instruments, liquidity is a problem. For example, on one position, I am still unable to exit because of no counter parties willing to trade. The bid was $0.0, bid size = 0!
just because there are no bids doesn't mean there is no liquidity, it just depends on if you are in the money or not, if you are ITM, try placing a limit order, of-course you have to roughly know the option value. Have traded a lot of those positions where there are no bids/no volume or open interest but there are always some hidden bids as long as you ITM.
"Since my trades were mostly on illiquid instruments, liquidity is a problem." I'm going to have that made into a desk plaque !
Yes, if they are ITM I can always offer slightly less than intrinsic value and get a scalper to bid and gets his risk free return. But they were OTM turned into DOTM with short expiration.