qid_traders penny option play got me thinking about the commissions involved in such trades.
Lets say i want to buy 1000 $'s worth at .08, at IB i think its about 50cents/option
1000/8=125, but actually you can only buy 117 because you just paid 62$'s to your broker and then you gotta
pay another 62 when you get out. Giving more than 10% of your trade equity to your broker does'nt sit too
well with me. Why not just trade the futurs for 4.50 round trip?
options commissions?
Started by
S.I.M.O.N.
, Apr 12 2007 09:35 AM
2 replies to this topic
#1
S.I.M.O.N.
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- Traders-Talk User
- 802 posts
SIMONForecast
Posted 12 April 2007 - 09:35 AM
*previously known as pnfwave
#2
vitaminm
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- Traders-Talk User
- 6,701 posts
Member
Posted 12 April 2007 - 10:13 AM
qid_traders penny option play got me thinking about the commissions involved in such trades.
Lets say i want to buy 1000 $'s worth at .08, at IB i think its about 50cents/option
1000/8=125, but actually you can only buy 117 because you just paid 62$'s to your broker and then you gotta
pay another 62 when you get out. Giving more than 10% of your trade equity to your broker does'nt sit too
well with me. Why not just trade the futurs for 4.50 round trip?
Yes,option trades cost lot.
How many round trip contracts can u trade for $4.50 ?
vitaminm
#3
S.I.M.O.N.
-
- Traders-Talk User
- 802 posts
SIMONForecast
Posted 12 April 2007 - 10:24 AM
1qid_traders penny option play got me thinking about the commissions involved in such trades.
Lets say i want to buy 1000 $'s worth at .08, at IB i think its about 50cents/option
1000/8=125, but actually you can only buy 117 because you just paid 62$'s to your broker and then you gotta
pay another 62 when you get out. Giving more than 10% of your trade equity to your broker does'nt sit too
well with me. Why not just trade the futurs for 4.50 round trip?
Yes,option trades cost lot.
How many round trip contracts can u trade for $4.50 ?
*previously known as pnfwave
