Stocks & Commodities V. 21:2 (48): Q&A by Don Bright
Product Description
Q&A by Don Bright
EXIT STRATEGIES AND FAIR VALUE
Two questions: A while back you had some postings regarding some of your “seasoned traders” who were entering several hundred orders on the opening each day. Would I be correct in assuming they use some sort of automated exit strategy? They couldn’t possibly trade their positions individually, as you seem to do. How do they execute this?
Second, someone posted something to the effect of holding onto a position well after the opening because “…the premium [is] out of whack of fair value [and] …arbitrage will eventually pull things back to fair value.” I thought there was no fair value after the opening. Otherwise, it seems, you would be constantly calculating and holding positions much longer than you seem to hold yours. I look foward to your comments. Thanks — Mitchell Berkowitz
EXIT STRATEGIES AND FAIR VALUE
Two questions: A while back you had some postings regarding some of your “seasoned traders” who were entering several hundred orders on the opening each day. Would I be correct in assuming they use some sort of automated exit strategy? They couldn’t possibly trade their positions individually, as you seem to do. How do they execute this?
Second, someone posted something to the effect of holding onto a position well after the opening because “…the premium [is] out of whack of fair value [and] …arbitrage will eventually pull things back to fair value.” I thought there was no fair value after the opening. Otherwise, it seems, you would be constantly calculating and holding positions much longer than you seem to hold yours. I look foward to your comments. Thanks — Mitchell Berkowitz
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |