I find it interesting that Erik Swanson of Simplex wasn't asked about the DOJ investigation that specifically targeted Simplex & others regarding the Gamestop situation. You should've also asked Erik how much money was stolen from retail traders when clearing houses & market makers removed the buy button but ONLY for retail; institutions were allowed to continue trading while retail had free market capitalism stopped to allow recidivist Wall St institutions to steal.
Imterview was great but the questions asked by host were very beginner regarding options & market making, I would have loved if he would asked him some very insightful questions.
A market maker can basically take the opposite side and stop the option reaching the strike price. They would have to have an aggregate position so although some might win, most would lose. Market maker would have far more funds than a retail investor,
Great video, I pushed like button, however, this video misses one super MEGAFUCKING IMPORTANT THING: how simplex and their peers calculate IV. I wasn't expecting a full answer, but at least a question, so it was a huge miss :( Anyway, the video doesn't talk about anything too much unknown, however, everything is very well structured for the ears who wasn't aware of what was happening on another end.
@@Ishvires I hear you, and you can get it this way, but I've found different companies get it their own ways, for their own risk management, and it's secret. Asking them how they calculate IV is the equivalent of asking them to share how they calculate risk, or asking an insurance company, how they calculate insurance premium risk.
Erik is hiding a lot of information. He doesn't want retail traders to know all the secrets on the other side of the fence. Good intro to what market maker does but not great enough...
Yes Ken, he was hiding a lot of info, its good to know that I wasn't the only one who spotted this. You have to understand that he doesn't care about retailers, but he worries about regulators/competitors to not say things which could somehow in one way or another could have a collateral damage and given the fact this guy is from option mm house, this is completely understandable.
Lol why would any successful trader give away edge that you worked hard to find? Qyit following the crowd and just find your niche and kill it quietly.
Not fully true. The real fact is that, options should be your last resort !!. Before stepping into options, you should make sure , you are a pro already. If not, you will blow up what's left..
Honestly I am wondering why I'm listening to this, this guy is the CEO and as such he WOULD NEVER say anything that would hurt the business and make them less successful which is why he's so great at sounding smart using a lot of words to say NOTHING.
He actually is a really honest dude and eluded to the negatives of High frequency trading if you actually payed attention. You gotta listen closely baby boy
Think about your brokers all of them are MM's. I dare say in most cases they are trading against you. Unfortunately they also use dirty tricks to take your money but what Erik is doing is quit different.
There's a former market maker on a youtube channel called "Confessions of a market maker".. I think it would be much better to talk to someone who isn't in the business anymore, who will be willing to tell us the dirty stuff that really goes on. I found this episode way too technical. Most retail traders don't care about all this. We care about market manipulation
@@Josh-Jones don't generalise what I meant by too technical. Knowing what gamma and delta means won't improve my trading. But knowing the way warrants are executed and the way market makers are involved in that, will. Stop sounding like a "typical" jackass know it all and get your head out your ass
@@MattTradesLife Yes JJ The Gorilla insightful information are unreal. I'm a member in their trading group only $40/ month. Every day he holds a live market analysis and blow my mind with information what i guarantee you nobody ever talking about in any video or book!! To learning from someone like him worth every dime!Forgot the media they never tell you the truth what's really going on
Keep your day job bud. You're not cut out for this game. Why care about manipulation that's ALL around you in equities. People you will never meet, never know their intentions, never know their true positioning directional or not. Please stop this witch hunt. Citadel and the likes are laughing their asses off at retail players like you. There's a reason It's called dumb money and has been for decades.
A lot has changed and that's on everything but the truth is i don't even care much about bullish or bearish market because Fred got me cover as I am comfortably making 3.001B T C monthly.
What a waste of 20 minutes of my life. The host don't want to pry n ask the market maker real important questions. And the MM answering basic questions like politicians. Don't waste ur time to watch this rubbish
just listened to it, and yes youre right. all these quant / algo fuckwits are pure scum and vultures . especially these scum that get order flow from retailers . its like the casino got angry because they couldnt steal your bank account directly, so they keep rigging the game in their own favour
market makers are concerned with providing liquidity and stability. Not a 10-bagger. This isn't the kind of options trader most listeners of the podcast are after. Put another way: listeners here absolutely do NOT trade this way.
Specialists and designated market makers are designed that way my friend. Not all MMs are designated and some are more predatory than others. It's not black and white lol.
And I scalp flow on the Dom that's it. That's more akin to index arbitrage or market making than anything else. Position holding usually a few seconds or a few minutes.
So glad to find this podcast, I’m still enjoying the ones from a few years ago. Keep up the good work
29:30 is the short answer everyone is looking for with an example.
Amazing interview brother… makes me think twice how I’m buying and selling options now!
thank you Aaron...your content has been such a blessing in my life!!
@@jaysteve4442 Bro calm down
Aaron hits it out the park again! Bravo!
It's nice to listen to highly intelligent people like you two. Thanks for sharing with us!
Thanks so much for this content very informative.
Good
General
1. Marketing Making / Market Dynamics
Arron, great content ; this was very inciteful!
Such an insightful interview.... Thanks AARON
I'd love to hear an interview with someone who was on the other side of the AMC squeeze
Very spot on questions from Aaron and astonishingly accurate answers from Erik. Loved the interview, great work 👍🏻
Excellent interview.
Wow, great questions and a great guest with an interesting point of view. Thank you for the amazing work you do!
I find it interesting that Erik Swanson of Simplex wasn't asked about the DOJ investigation that specifically targeted Simplex & others regarding the Gamestop situation. You should've also asked Erik how much money was stolen from retail traders when clearing houses & market makers removed the buy button but ONLY for retail; institutions were allowed to continue trading while retail had free market capitalism stopped to allow recidivist Wall St institutions to steal.
Insightful discussions!
Mind blowing mate thank you.
Great interview Aaron. Are there any interviews with equities Market Makers?
Great questions, Mr Fifield...
Great inside on the other side of the trade aka the market makers
Imterview was great but the questions asked by host were very beginner regarding options & market making, I would have loved if he would asked him some very insightful questions.
It's an awesome video
Great stuff. Thx guys!
Erik, can you please ask the CME to provide Daily expiration of MES options, that would be amazing.
What does "Key-fov eligible orders" mean, in regarding to 606?
Great interview
Does anyone know what happened to Aaron? He doesn't appear in the latest episodes from what I can tell.
Thanks for its bro
Wow that's great
Hope for more soon
A market maker can basically take the opposite side and stop the option reaching the strike price. They would have to have an aggregate position so although some might win, most would lose. Market maker would have far more funds than a retail investor,
43:40 slip of the tongue there... I think your first description was correct. "Price improvement SCHEME..."
Would be interested in an equities market maker interview.
Bernie madoff is the one who came up with the concept of payment for oder flow. So that should tell you why everyone is jumping on that ride.
Much Love
Key part of the content “Risk Management” Your welcome.
How is someone buying and selling stock with no opinion on the underlying; pricing the asset properly?
There is too much liquidity in USA markets is why rapid swings?
It is used as a hegde
Great video, I pushed like button, however, this video misses one super MEGAFUCKING IMPORTANT THING: how simplex and their peers calculate IV. I wasn't expecting a full answer, but at least a question, so it was a huge miss :( Anyway, the video doesn't talk about anything too much unknown, however, everything is very well structured for the ears who wasn't aware of what was happening on another end.
Each company has their unique way to calculate IV. Even Think or Swim won't share how they calculate their Weekly Expected Move.
@@joemama3372 You can extract IV out of option price, but the my question is still outstanding
@@Ishvires I hear you, and you can get it this way, but I've found different companies get it their own ways, for their own risk management, and it's secret.
Asking them how they calculate IV is the equivalent of asking them to share how they calculate risk, or asking an insurance company, how they calculate insurance premium risk.
Erik is hiding a lot of information. He doesn't want retail traders to know all the secrets on the other side of the fence. Good intro to what market maker does but not great enough...
Listening, 21:08 is gold. Never heard this before.
ruclips.net/user/DeanTinneyvideos
Dean Tinney, oustanding future interview canidate.. Lots of history and funny stories..
36:22 is also gold.
Are you listening to the same podcast as me?
39:28 is gold too.
Yes Ken, he was hiding a lot of info, its good to know that I wasn't the only one who spotted this. You have to understand that he doesn't care about retailers, but he worries about regulators/competitors to not say things which could somehow in one way or another could have a collateral damage and given the fact this guy is from option mm house, this is completely understandable.
he was trying SO HARD NOT to give any useful thing resembling an edge
they had epic puts on GME, and wondering how they are working in that market, or if the are subject to our market makers.
Lol why would any successful trader give away edge that you worked hard to find? Qyit following the crowd and just find your niche and kill it quietly.
The moral of this story is that you should not trade options. You will lose money long term because you are on the other side of the casino.
That's dumb
Not fully true. The real fact is that, options should be your last resort !!. Before stepping into options, you should make sure , you are a pro already. If not, you will blow up what's left..
Too bad 95% of "traders" don't have any real edge trading just buying calls on trash names.
Ok, if you say so
Honestly I am wondering why I'm listening to this, this guy is the CEO and as such he WOULD NEVER say anything that would hurt the business and make them less successful which is why he's so great at sounding smart using a lot of words to say NOTHING.
He actually is a really honest dude and eluded to the negatives of High frequency trading if you actually payed attention. You gotta listen closely baby boy
@@andrew1919 If you don't hand things to people on a silver platter nowadays, apparently you're useless.
Did you even listen to the whole thing?
Erik has a bit of a meat head like his brother Joe Swanson on family guy lol
Loved the discussion!
Draco to the moon! $100 in 1 year
This guy sounds like Preston Jacobs.
Finally ⚡
HFT MARKET MAKER !!!
Aaron
Think about your brokers all of them are MM's. I dare say in most cases they are trading against you. Unfortunately they also use dirty tricks to take your money but what Erik is doing is quit different.
global prime isint a market maker
@@ragimundvonwallat8961 they are, read there pds
What? ..... traders edge is better risk reward.....
Our actual humans?? Wtf
There's a former market maker on a youtube channel called "Confessions of a market maker".. I think it would be much better to talk to someone who isn't in the business anymore, who will be willing to tell us the dirty stuff that really goes on. I found this episode way too technical. Most retail traders don't care about all this. We care about market manipulation
I listen to that podcast you mentioned all the time. That guys stories are insane...
@@Josh-Jones don't generalise what I meant by too technical. Knowing what gamma and delta means won't improve my trading. But knowing the way warrants are executed and the way market makers are involved in that, will. Stop sounding like a "typical" jackass know it all and get your head out your ass
@@MattTradesLife Yes JJ The Gorilla insightful information are unreal.
I'm a member in their trading group only $40/ month.
Every day he holds a live market analysis and blow my mind with information what i guarantee you nobody ever talking about in any video or book!!
To learning from someone like him worth every dime!Forgot the media they never tell you the truth what's really going on
"We care about market manipulation but don't understand BASIC market structure, BASIC short selling, HARD skills in trading flow, anything like that"
Keep your day job bud. You're not cut out for this game. Why care about manipulation that's ALL around you in equities. People you will never meet, never know their intentions, never know their true positioning directional or not. Please stop this witch hunt. Citadel and the likes are laughing their asses off at retail players like you. There's a reason It's called dumb money and has been for decades.
Didn't appreciate how Erik is hiding a lot of stuff.
get Fred on
>Fredeugene👊🏻 Te le gra m,.......≤.
17.007 BTC in less than 8 months of trading with His strategy works.
A lot has changed and that's on everything but the truth is i don't even care much about bullish or bearish market because Fred got me cover as I am comfortably making 3.001B T C monthly.
You scammers are so obvious
What a waste of 20 minutes of my life. The host don't want to pry n ask the market maker real important questions.
And the MM answering basic questions like politicians.
Don't waste ur time to watch this rubbish
Nothing of value in this video. Prove me wrong
just listened to it, and yes youre right. all these quant / algo fuckwits are pure scum and vultures . especially these scum that get order flow from retailers . its like the casino got angry because they couldnt steal your bank account directly, so they keep rigging the game in their own favour
Man I must say I find it hard ta trust anything he saying lol
Take my puts. Enjoy the loss.
Market makers are crooked
Fake news, fake subscribers
market makers are concerned with providing liquidity and stability. Not a 10-bagger. This isn't the kind of options trader most listeners of the podcast are after. Put another way: listeners here absolutely do NOT trade this way.
Specialists and designated market makers are designed that way my friend. Not all MMs are designated and some are more predatory than others. It's not black and white lol.
And I scalp flow on the Dom that's it. That's more akin to index arbitrage or market making than anything else. Position holding usually a few seconds or a few minutes.