NEST is a premier platform for trading algorithmically. As one of the first products in India to be enabled for algo trading, NEST has a long and varied background in algo trading.
A significant volume of the trading in India happens algorithmically and NEST is a key part of this order flow.
In algorithmic trading sections, we talk about various canned strategies that have been developed by Omnesys for Algo trading which the customer can pick and choose and run for his prop trading.
Trading as a single basket as a group of stocks/instrument. The systems manages the various fills and let you know when the basket is filled. Very useful for large basket trades. Baskets can also be matched to Index or create new index based on contents of baskets.
Order slicing is breaking up a larger block order into smaller orders so that there is minimal market impact. This can also be used to break up order flow between various groups of traders.
Omnesys Nest Gate is a comprehensive tool to build extremely customized directional execution algorithms without writing a single line of code
2L & 3L Spreading
2L and 3L spreading is creation of dynamic spread instruments by the user. Can be any set of instruments supported by NEST. The trade is executed as a single order if the exchange supports it or NEST manages the orders.
Omnesys NEST Smart Order Routing (SOR) engine strives to provide best execution across a number of exchanges to retail as well as institutional investors and algorithmic traders.
We have a special centralized desk for APPROVED ALGO TRADING.
Only Serious Inquiries solicited. Call 9 88 44 131 96 - HNI Desk
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by: Jesse Chen
Of all the options analysis strategies, Arbitrage trades seem to
be one of the most intriguing and elusive strategies. Arbitrage is officially defined
as the buying and selling of a financial instrument in order to profit from the price
differential. This traditionally occurs between two different exchanges, possibly between
a domestic and foreign exchange where one exchange has not adjusted for the
constantly changing currency rates. Arbitrage was made famous in the movie “Rogue
Trader” in which Nick Leason was supposedly making his millions arbitraging the
Nikkei index between the Singapore and UK exchanges.
Option Arbitrage involves the simultaneous buying and selling of options either between
exchanges or the same exchange. We will cover six different types of options strategies
in this article: strike, calendar, intra-market, and conversions, boxes, and straddles.
Please take into account when trading arbs that there can be early assignment of any in the money options
for all American Style Exercise Options (exercise before expiration).
Also, possible dividend liability exists on any exercised short puts during dividend dates.
Calendar Option Arbitrage
A calendar arbitrage involves the buying and selling of options with the same underlying options, strike, and type (call or put), but different
months where the nearer month is sold for more than the further month is bought.
Calendar arbitrages, may require longer periods in order to realize the small profit.
Strike Option Arbitrage
A strike arbitrage involves buying and selling the same underlying options, month, and type (call or put) but different strikes
where the strike difference is less than the premium difference. When this occurs, a risk less trade can be formed.
A intra-market arbitrage invoices buying and selling the same underlying options, month, strike, and type (call or put) but
different exchanges (cboe, philadelphia, pacific, or american).
A conversion consists of buying a put, selling a call, and buying the underlying.
The put and call are the same underlying option, strike, and month.
There is also a short conversion which is the opposite of this: Sell Put + Buy Call + Sell Underlying = Short Conversion
A box conversion is Buy Call (strike1) + Sell put (strike1) + Buy Put (strike2) + Sell Call (strike2)
Essentially a box is two conversions without the underlying.
You can also have conversions and boxes with different strike prices which may produce arbitrages:
There a 6th arb known as the a Straddle Arb with a net negative time value on the call and put options.
These six options arbitrages can be summarized in the following table:
Option Arbitrage Matrix
|Option type (call/put)||same||same||same||different||different||different|
Source : optionstar com