November 2017
Beginner
238 pages
5h 12m
English
Content preview from Trading Options for Edge
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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.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.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.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.
Chapter 3 Market Makers, Risk, and the Individual Trader
When I first started trading, I’ll admit, as much trading training as I had, I still felt unprepared. It wasn’t until I went to work for Scott Kaplan at Quiet Light Trading that I ‘got’ risk. He used to say to me, “Great trade . . . where is the edge?” He meant this from a capturing dollars perspective and a risk management perspective. Working for Scott taught me not just how to make good trades, but how to capture those dollars.
How Market Makers Make Money
Let’s start with a simple concept, a NYSE specialist. If I am a NYSE specialist, I might have a stock XYZ worth $100. As a specialist, I might make the market $99.50 at $100.50, 100 shares ‘up’ (meaning I am willing to buy or sell ...
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