A frightening find.

Discussion in 'Order Execution' started by J Painter, Aug 31, 2003.

  1. J Painter

    J Painter

    In reading the E.T. threads regarding I.B. and stop-limit orders residing natively on Globex, the TWS user guide under "Stop Limit Orders" (third paragraph down) reads, "Regardless of whether an exchange accepts or processes stop-limit orders, Interactive Brokers will simulate all stop-limit orders." Guess my search for a broker continues. Any enlightened members care to comment?
  2. what does that mean? simulate all stop limit orders?
  3. From what I can tell they are native on Globex through IB.

    The reason I think so, is if I use a stop limit order the status box turns green. According to IB "GREEN indicates that your order has been accepted and is working at the order destination."

    If I use a stop market, the status box is Dark Blue. "DARK BLUE indicates that a simulated order type has been accepted by the IB system and that this order has yet to be elected. The order is held in the IB system (and the status remains DARK BLUE) until the election criteria are met. At that time the order is transmitted to the order destination specified and the order status color will change appropriately."

    Perhaps the documentation you are quoting needs to be updated?


  4. I think what you are saying is always what I understood....stop limits are on Globex's servers...stop markets reside on IB's servers.
  5. sprstpd


    On IB's "Products and Exchanges" page (under "Resources"):

    CME (GLOBEX) (2)
    G (5), L, m, s, SL, t

    Order Legend
    G = native GTC, g = simulated GTC, L = limit order, M = native market order, m = simulated market order, O = native MOO, LOO, MOC, LOC orders, o = simulated MOO, LOO and MOC, Q = Request for Quote, R = relative order best execution, r = relative order direct, S = native stop order, s = simulated last price stop order, s2 = simulated 2 price bid/offer stop order, SL = native stop limit order, sl = simulated stop limit order, t = simulated trailing stop order, V = vwap order.

    This implies that stop limit orders are native.
  6. Didn't they do this simulated stop order because globex did not accept stop orders? I don't see how that would affect someone's choice of broker. It's not like any other broker can do something with globex that IB can't.
  7. speedy


    Do you mean stop order for stop market? The definition of a stop order is a market order once the stop price is reached. Stop market would be redundant.
  8. UCLA


    In the past, stop order and stop market order would be redundant but with the growing number of stop orders that are available it is good to clarify to prevent any potential confussion.

    Stop Market, Stop Limit, Trailing Stop Market, Threshold Triggered Orders, etc.

    Many firms have client sided stop orders for NASDAQ securities and other firms will hold it server sided. It is true that the specialist (listed securities) will hold certain stop orders, they will not hold the new stop order types. Also the specialist is not going to reach out to specific ECNs. I suggest locating a Broker that will offer server sided Stop orders and when the order is triggered hopefully the Broker will look at a variety of destinations for "Best Execution" With client sided Stop orders the possibility of losing your Stop order due to loss of internet connection to your broker or your home computer crashing is more likely than that of a commercial grade server.

    I hope my opinion helps.

    Good trading
  9. Non-native stop orders are slower and less effective. It is not sent to the exchange until the price quotes it gets reaches the stop level. When it reaches the exchange, the price may have already traded through the stop limit level. If it is a stop limit order, it may not get filled; if it is a stop order it may get more slippage. I am wondering why some exchanges don't offer native stops. :confused:
  10. def

    def Sponsor

    I am enlightended:) IB's stop limit orders on globex are native. Other exchanges we route to which accept thhis order type should be native is well. as explained in a previous post the dark blue and green codes display whether an order is native or not. the link on the web site needs to be updated.
    #10     Sep 1, 2003