Wednesday, March 24, 2010

DELAYED DATA OF 20 MINUTES CAUSES LOSS OF $100 PER OPTION CONTRACT ( report #13 )

OPTION HOUSE virtual trading platform ( Report #13 )

I am noticing that the delayed 20 minute data is costing me $100 extra loss, per option contract, not accounted for in the time quotes when placing the order on the OPTION HOUSE platform.
The market orders lose an extra $100 per single option contract in trials.

You get a quote that is incorrect to buy or sell, but when you go back to see the ORDER EXECUTION, the fill or slippage, is usually a $100 worse. I put this down to the TIME DELAY.
Some method of dealing with the delayed data such as LIMIT orders would have to be implemented into your trading style.

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