Broker/Data: Deep Discount Trading/Rithmic,DeCarley/Gain
Favorite Futures: Future Options
Posts: 35 since Sep 2012
Thanks: 46 given,
Ron, appreciate the advice, and the experiences you recount sound pretty extreme.
We need to be careful we are not trying to find a devil behind every bush here, our only avenue to carry out our business, whether we like it or not, is via a FCM, if we label them all as having an 'irrational fear ' and ready to close our positions at a moments notice , we won't trade anywhere and we may as well pack up an go home now.
As a conservative option seller, I welcome such advice from a broker, it basically tells me option writers are welcome but be well capitalised and conservative. If I was a broker or FCM I would say something very similiar to clients.
After doing the due diligence I'll consider my brokers as friendly until proven otherwise, the last thing we need is for us conservative sellers to having an irrational fear that our broker is going all of a sudden be unreasonable .
I didn't label all FCMs as having an irrational fear. But some do.
IB is one. Otherwise they wouldn't charge 3X to 6x exchange margin.
And an FCM that says "Option Writing has been the # 1 Destroyer of Major Banks & Brokerages so it cannot be taken lightly." is another. They are lumping what we do in with the extreme things that banks do. It isn't the same.
The place that made me dump positions when I had 80% cash was always giving me grief about option selling until they went over the edge and made me dump positions when I had plenty of cash. The hand writing is on the wall.
There are many places that don't have irrational fear of option selling. That is where we need to place our accounts.
Yeah I have informed them of problems with their system that they didn't know about. Trade Calc was miscalculating Profit & Loss for a while. And the Trade Now button wasn't working. I got them to realize the problem and fix it.
The one cool thing is they have a Wish List where you can send them ideas. They have actually used a couple of my ideas.