[TheOptionClub.com] Re: Newbie question

 

Sam,

TOS has an awesome paper trading feature and while it is based upon
actual market data you have to keep in mind that it is a market
simulation and is not real. My understanding is that PaperMoney is set
up to fill at the "mark" price. The "mark" price is the mid-point
between the bid and the ask. In highly liquid markets you might get
filled at the mark, but usually you have to give a bit more in the "real
world."

The bottom line is that as good as TOS' PaperMoney may be, it does not
actually find someone to take the other side of your pretend trade and
is only simulating the fills. The "real world" requires that there be
someone on the other side of your trade, even if it is only a market
maker. The market maker is nobody's fool and expects to get paid for
their trouble. They will probably want a bit more than the mid-price,
or the "mark," affords them.

Christopher Smith
TheOptionClub.com

--- In OptionClub@yahoogroups.com, "iflyadesk" <sambharris@...> wrote:
>
> Hello everyone. My name is Sam and I've been lurking for a few weeks
and learning a lot from everyone's posts. I have been paper trading on
thinkorswim and have been doing quite well, so I decided to try it with
real money. However, I've been having a great deal of difficulty
getting my vertical orders filled at market. In TOS paper money, if the
volume is 1000+ for the day, I can fill an order in seconds, but with
real money, several minutes go by without filling. My strategy is
somewhat dependent on nearby prices, so by then the market has changed
and I have to cancel. Any ideas on why this is happening? Is this
normal for the "real world"?
>
> Thanks!
> Sam
>

__._,_.___

Reply to sender | Reply to group

Messages in this topic (2)

Recent Activity:

• New Members 8
• New Files 1

Visit Your Group Start a New Topic

The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com

MARKETPLACE

Going Green: Your Yahoo! Groups resource for green living

Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use

.

__,_._,___