SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Canadian Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dave.S who wrote (691)10/21/1997 10:53:00 AM
From: Vectra  Read Replies (2) of 1598
 
Dave your last statement in regard to when options are automated suggests that with the automation of options that on stop orders will be triggered a lot more often.

Although I understand that this is your opinion, the reality is, options and options traders and their orders really have little impact on the Canadian equity market place. Most large options trades are part of a larger contingent order with the equity side of the trade done as a special trade that is completed within the parameters of the current bid/ask prices and usually do not influence the market price of the stock, only the total trading volume. To suggest that automating options will influence a higher degree of on-stop orders being triggered is ludicrous, after all are not options priced upon the underlying price not the underlying being priced on where the options are traded - remeber this is not the case of the tail wagging the dog.

This type of mind set only creates missunderstanding, the automated market if anything creates a level playing field. No more will you see a group of traders manipulating the market to trigger these orders, since they will not be seeing them. Instead the auction market will determine if they are triggered.

As for the difference between LOTS and CATS, putting in stink bids and offers has always worked in a volatile market, and again suggesting that it is the system that creates these trading patterns ignores the realties of what has been a normal course of business for many years. It is the sharp trader who captures and profits from these anomalies and unfortunately it is the unitiatied that get caught in these panic situations. However your noting it goes a long way in helping others in recognizing and preparing for them.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News