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March 29, 2016 at 12:17 pm
#5191
IncomeLab (Old)
Participant
Suresh, GTC orders are bad for ICs. If the market moves and credit shifts to one of the sides of an IC then you’re taking all the risk on both sides but getting paid only for one, if that makes sense. I use DAY orders, keep an eye on each spread and if the market moves to where most of the credit is on one side of IC, then I’ll look to move strikes to keep credit more or less balanced.