The example was just for illustration purposes, a simplified version of how it works.
>"Also options trading is a regulated marketplace"
Is that right?
https://en.wikipedia.org/wiki/Derivative_(finance)#OTC_and_e...
"Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. Products such as swaps, forward rate agreements, exotic options – and other exotic derivatives – are almost always traded in this way. The OTC derivative market is the largest market for derivatives, and is largely unregulated with respect to disclosure of information between the parties, since the OTC market is made up of banks and other highly sophisticated parties, such as hedge funds. Reporting of OTC amounts is difficult because trades can occur in private, without activity being visible on any exchange."
>"Finally 'yummyfajitas is an ex-HFT who has written good blog posts on the subject."
I would welcome yummyfajitas 's feedback. I'm not attacking yummyfajitas, if that's what you're implying.
