10 Busted Myths of Options Trading
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Myth #3: Option trade execution is a rip-off.
Some believe market makers have it fixed so they make the big money while the individual investor gets stiffed. This myth is simply a vestige of a market where trades were executed only by the market makers. Thanks to the advent of technology, things are done completely differently now.
According to Tom Sosnoff, "We've come from essentially an archaic open out cry system with non-competitive marketplaces to a very competitive multi-exchange listed, efficient world of trading. The option marketplace changes have been more dramatic than anywhere else just because of all the different exchanges competing for the same order flow."
The reality in the options markets now is that technology combined with greater competition for trade execution has added a high-level of openness and transparency to the trade. This environment insures that options trades are executed at the best price available for virtually every trader.
Options execution a rigged game? Myth busted!
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