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payment for order flow???

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Market Wizard
Boca Raton
Trading Experience: Advanced
Platform: Variety
Broker/Data: Optimus Futures, LLC
Favorite Futures: Futures
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Posts: 2,423 since Sep 2010
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learning0101 View Post
Hi @mattz
Since you are in the industry and if you get time would appreciate your insight here concerning the OP comment.

Thank you for the mention and the sentiment.
I can not provide legal interpretation for AMP FCM's application, but I can give you my view and opinion.
If you send an order via GLOBEX using the ES instrument to the exchange from your platform, it goes directly to the exchange. There is enough liquidity between buyers and sellers where the exchange will match buyers and sellers.

However, other businesses may happen between customers and FCM, and FCM to FCM.
For example, you may find a USA based FCM that does not have an LME membership, so he may direct this execution to other FCMs via a give-up agreement for those who require such arrangements. This is something we have encountered at Optimus when a customer wants to add additional foreign contracts.

Also, You may have a situation where you need to price an Option that is way far out in terms of price and time. You may need to use the expertise of a market maker to price such a transaction.

Further, there are OTC deals, SWAP deals, etc. that are typically institutional and as such do not apply to retail traders. As such, FCM applications must cover all possible scenarios legally whether they apply to the particular trader or not.

I hope this helps, and if anyone needs help with the AMP application, they may contact us.

Thank you and have a good weekend.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
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