How do the prices of derivatives relate to prices of their underlyings?
futures io futures trading



How do the prices of derivatives relate to prices of their underlyings?


Beginners and Introductions

Created May 5th 2011 by dyross
Updated May 6th 2011 by whatnext
looks_onedyross with 5 posts (0 thanks)
looks_twoFat Tails with 4 posts (6 thanks)
looks_3whatnext with 2 posts (0 thanks)
 
trending_up2,800 views
thumb_up6 thanks given
forum11 replies
attach_file0 attachments



Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

How do the prices of derivatives relate to prices of their underlyings?

  #11 (permalink)
San Francisco
 
 
Posts: 12 since Apr 2011
Thanks: 2 given, 0 received


whatnext View Post
Can't prove anything regarding who had a clear advantage in potentially the most profitable day in trading history. Even if I did I wouldn't have the balls to post it - nor the big (but circumstantial) chunk of the puzzle I saw 10 days later. FWIW it's well known that not all venues of trade were subject to the same (unheard of ?) 30% max profit limitation.

It took a while to come out but Zero Hedge prove the flash crash was a result of quote stuffing (in my book at least).

What I incorrectly said caused it at the time was the high frequency trading algos going from buy to sell. 100's of thousands of HFT's are sent out every second. Almost all of them cancel out but the ones that don't break up big orders which pushes up the buy limit of the order. Not great if it's your order but great if you already owned the equity. If they go from buy to sell that would be reversed and the number of liquidity providing old fashion market makers has gone down a good amount.

Right, so how does that affect underlying stocks?

Reply With Quote

Can you help answer these questions
from other members on futures io?
Day Trading University
Trading Reviews and Vendors
Radar Screen for small caps
TradeStation
Float Study in Easy Language code but need help converting to thinkscript
ThinkOrSwim
Highlighting Oscillators in Sierra Charts
Sierra Chart
Agena Trader
Platforms and Indicators
 
Best Threads (Most Thanked)
in the last 7 days on futures io
ES futures Spoo-nalysis SP500/SPX
339 thanks
Recession? Depression? Bailout!
173 thanks
Coronavirus COVID-19
171 thanks
Is Orderflow An Outdated Concept?
161 thanks
Gold Futures (GC) main discussion
56 thanks
 
  #12 (permalink)
Rockland county , New York
 
Trading Experience: Intermediate
Platform: NT 7
Favorite Futures: CL, 6E, SI, ZC
 
whatnext's Avatar
 
Posts: 235 since Mar 2011
Thanks: 338 given, 80 received

Don't know if or how much each long/short of an ES contract pushes up or down the underling 500 companies of the S&P.

Quote stuffing disables the filling of new orders so only sells are filled (sells make a stock go down).

Not a 100% but think a reverse of HFT algos, from buy to sell, would push down the limits of buy price range and / or up the limits of shorting.

Reply With Quote

Reply



futures io Trading Community Traders Hideout Beginners and Introductions > How do the prices of derivatives relate to prices of their underlyings?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now
 

$250 Amazon Gift Cards with our "Thanks Contest" challenge!

Right now
 

Social Media Predictive Data for Traders w/Joe Gits @ SMA [and Lime Brokerage]

Apr 9
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
ICE/NYBOT Prices help... MXASJ Commodities 15 February 11th, 2016 05:58 AM
If you REALLY want to know why gas prices are high.... RM99 Off-Topic 4 April 27th, 2011 05:58 PM
Bulk Monitors Best Prices c12345 Tech Support 10 August 4th, 2010 07:02 PM


All times are GMT -4. The time now is 02:27 PM. (this page content is cached, log in for real-time version)

Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts