May 2012
Beginner
240 pages
4h 57m
English
book
The Option Trader’s Hedge Fund: A Business Framework for Trading Equity and Index Options
by Dennis A. Chen, Mark Sebastian
Content preview from The Option Trader’s Hedge Fund: A Business Framework for Trading Equity and Index OptionsBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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13. Lessons from the Trading Floor on Trading and Execution
What Everybody Should Know About Payment for Order Flow
Mark Sebastian wrote the following in his OptionPit.com blog on 12/20/2009:
When I first began trading in 2001, a market making firm, let’s call it Firm XYZ, came up with a new and innovative idea to bring option volume to the Pits where they controlled the most volume, the Pits where they were the Specialist, or the Designated Primary Market-Maker or DPM.
This was called payment for order flow. The exchanges call them “marketing fees” and your broker may call it one of many names.
What seemed like a bright idea at the time has blossomed into a situation that is
• Bad for the customer
• Bad for the liquidity provider
• GREAT for ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.