Prior to using the TT Uncovered application, administrators must enable and configure the trader as an active user on the TT Platform. This includes performing the following in TT’s Setup application:
Once a TT Uncovered synthetic order is placed, it can be managed via the Order Book.
Columns related to TT Uncovered can be added via “Edit Columns”.
To open TT Uncovered, in the workspace menu bar, click Widgets | Options | TT Uncovered.
The user can send an option or option strategy to TT Uncovered from the Market Grid, Options Chain, or Strategy Creation widgets. TT Uncovered opens with that instrument already loaded in the Option Leg field.
Right-click an option and select Launch linked > TT Uncovered.
Select an option, right-click, and select Send To Uncovered.
In the Create button drop-down, select Create & Send to Uncovered.
In the Strategies grid, right-click an option strategy and select Send To Uncovered.
The user can submit orders against TT Uncovered synthetic markets the same way the user submits orders for exchange-traded instruments.
The TT Uncovered configuration window provides the user with configuration options in creating a synthetic quote.
When Auto (6) is unchecked, four additional fields appear:
A. Delta Range – The number of steps above and below the Delta, each as large as the Delta Step Size, used when creating the set of covered spreads.
B. Delta Step Size – The step size of the delta used when creating the set of covered spreads. Example: if Delta is 3, Delta Step Size is 2, and Delta Range is 2, the app will attempt to create covered spreads for all specified reference prices with the following deltas: -1, 1, 3, 5, 7.
C. Reference Price Range – The number of steps above and below the Reference Price, each as large as the Reference Price Step Size (in ticks of the underlying future), used when creating the set of covered spreads.
D. Reference Price Step Size – The step size of the reference price ticks used when creating the set of covered spreads. Example: if Reference Price is 0’12 (and the instrument ticks in increments of 0’01), Reference Price Step Size is 3, and Reference Price Range is 2, the app will attempt to create covered spreads for all specified deltas with the following reference prices: 0’06, 0’09, 0’12, 0’15, 0’18.
The graphic below shows two further examples of how the reference price range and step size parameters interact, and the total number of covered spreads generated in each case.
If the user adds a synthetic quote to a Market Grid, the user can add columns for OptBidQty, OptBid, OptAsk, and OptAskQty to display underlying option quote details alongside the synthetic quote.
When the user opens the TT Uncovered widget, it displays the list of synthetic quotes the user has created and those that have been shared with the user. The user can launch, create, and manage (copy, share, delete) all of the user’s synthetic quotes from this widget.
The user cannot edit an existing synthetic quote. However, the user can copy an existing synthetic quote, edit it, and then modify the copy before saving it as a new synthetic quote.
Synthetic quotes expire at the end of the trading session.
The TT Uncovered widget provides the following functions: