Any statistics on how often a limit order is filled without the market crossing it vs the market trading through the limit price? And since your first point says an LP could be resting between the displayed quotes (and this can give clients price improvements when crossing the spread,) then are clients also able to place limit orders between the exchange supported tick increments as well, or are they limited to 0.5 pip price levels while being front run by unlit liquidity providers? How does IdealPRO handle order priority between LPs and Clients? FIFO or LP preference? (Not a jab, I'm actually curious about how it works in detail.)
def: do you plan on introducing decimal quotes instead of half-pips? IB is one of the last that still does this..
I feel like you might be repeating yourself as well but this is all too new to me to quite get it! LOL... I do want to thank you for your lengthy replies so this is very much appreciated. I would like to attach a picture taken from an excerpt of the book I am referencing, and here is the PDF file incase anyone is interested. Because this is made freely available I feel ok with post this screen capture. http://infofpas.files.wordpress.com/2011/10/excerpts-fpas-hr-27-11.pdf Because the time scale on the bottom changes, this is obviously not a chart made up of time bars but rather tick bars. These are produced by www.prorealtime.com. So are these ticks made up of the volume as you are trying to explain to me since actual real tick data cannot be known? I hope I even asked that right! Basically, I just want to make sure that whatever broker I go with can produce charts in this similar manor so that the price action techniques I am learning I will be able to apply. And second question if I may, the author states that it is advisable to not have your charting come from the same company as your order execution, meaning the broker I take it. Why the heck would this be? He states that you want to make sure that your charts match up the bid/ask prices to maybe within 0.1 or 0.2 pips because they will never be exact, but that it is advisable to have these separate. Does this make any sense and why?
Oppps... chart didn't attach, let me try again. All I keep getting is upload errors... but if you open up the preview PDF in the link, there is a sample chart posted on Page 6. Maybe the site is having trouble since today they upgraded the look of the forums.
Def, When a client places a limit order, on which book does it sit ? Is it IB's book or is it the book of one of the banks ?
you are not allowed trading forex in Canada ,its illegal,you braking the law,i know it ,I live in in alberta and all my forex account were forcefully closed,some even without warning like oanda,and I still had opened trades at that time,can you believe it? they closed my account while trades were still open
The "book" is created by all the liquidity providers as well as IB clients. If you place a non-marketable order for FX, it will sit on IB's servers and when it becomes marketable it will be shown to the liquidity provider for an execution - quite often fills are returned with price improvement as well. If an IB client sells at your price, you'll also get matched. Note that IB does show prices in 1/10th of a pip now as well.
I live in Alberta province , no you cant't, that is a very rich province, and government do not want me to lose my riches, so I am switching to futures instead