AndrewS
  • Member for 8 years, 6 months
  • Last seen more than 4 years ago
The spread goes to the market maker, is the market maker the exchange?
9 votes

A "market maker" is someone that is contractually bound, by the exchange, to provide both bid and ask prices for a given volume (e.g. 5000 shares). A single market maker usually covers many stocks, ...

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Do the proceeds from selling an option immediately convert to buying power in a margin account?
Accepted answer
6 votes

Yes. I heard back from a couple brokerages that gave detailed responses. Specifically: In a Margin account, there are no SEC trade settlement rules, which means there is no risk of any free ride ...

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Are low commission trading sites safe?
Accepted answer
4 votes

Generally, yes. Rather than ask, "why are these guys so cheap?", you should be asking why the big names are so expensive. :) Marketing spend plays a big role there. Getting babies to shill for your ...

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Other than being able to borrow to invest, how is a margin trading account different from a cash account?
3 votes

In summary: Cash accounts do not allow short positions, except for covered calls or puts Day-trading has different restrictions in the two account types Proceeds from sales are available immediately ...

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Purchasing options between the bid and ask prices, or even at the bid price or below?
1 votes

This sometimes happens to me. It depends on how liquid the option is. Normally what I see happening is that the order book mutates itself around my order. I interpret this to mean that the order book ...

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What extra information might be obtained from the next highest bids in an order book?
1 votes

My broker collates the order book by price and marketplace, displaying the number of shares available at each level, sorted as in Victor's screencap. You can glean information from not just a snapshot ...

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