IB & ECBOT stops

Discussion in 'Retail Brokers' started by FOmonkey, Dec 3, 2006.

  1. FOmonkey

    FOmonkey

    Was wondering if anyone here (particularly IB guys) had some insight into this issue. ECBOT supports native market stop orders. However, IB doesn't support stops outside of normal market hours. This presents several problems:

    1. IB defines normal market hours to be 9:30-4. As we all know, futures day sessions are different. I don't understand how a firm as well-established as IB can't deal with different markets trading at different hours. When I ask about this they just tell me it's a management policy. Something makes no sense here.

    2. Why can't my market stop order work in the after hours? The order is native, so it has nothing to do with IB simulating it etc. Again, this seems like a straightforward capability that IB should be able to handle.

    3. The stock answer I get from IB is that I should use stop-limit orders, which they simulate and will work in the off-hours. However, the exchange specifies the bounds within which your limit price will be accepted. These bounds change every day, and they often aren't wide enough to accommodate running deep stops. So, you run a very real risk of your stop never being elected if the market gaps substantially. In addition, you will never know if you have specified a valid limit price since IB will just accept it, and it will get bounced when your stop level is reached (when it is too late)...surprise!

    If these are structural limitations in IB's system then fine, but I wish someone would be forthcoming enough to admit it to me. If not, then why not modify the system to accommodate?
     
  2. Steve_IB

    Steve_IB Interactive Brokers

    System has been modified:

    From release notes for TWS865
    http://www.interactivebrokers.com/en/software/releaseNotes/Betanotes.php?ib_entity=llc

    Allow Stop Orders on Ecbot and Nymex to Trigger Outside RTH
    You can now tag Stop orders on Nymex and Ecbot to trigger outside of regular trading hours (outside RTH). Previously stop orders on these exchanges were only eligible to trigger during regular trading hours.
     
  3. My ZN (10yr note) stop orders are also currently tagged as NOT triggering outside RTH. However, I can enter a ZG (Gold) stop order (also on ECBOT) and it works as usual (i.e. will trigger outside RTH).

    Does anyone know if this a problem with ZN at the exchange (since the stops are native) or with IB?

    By the way, I also upgraded to the latest TWS and that didn't resolve the issue.

    -clip
     
  4. Steve_IB

    Steve_IB Interactive Brokers

    You can have different defaults for different contracts. You can check and amend these from the Order Defaults page in Configuration. The order defaults will have a setting for FUT, and if you drill down may also have settings for ZG and ZN - if the seperate contract is not specified then it will use the FUT settings.

    (When you place the order, you will see a clock icon if it's only set to trigger during RTH)
     
  5. Il Principe

    Il Principe Guest

    I've found that the only way around this is to wait until after the 12:00AM EST shutdown/maintenance to place your stops, which will then execute throughout the night if triggered.
     
  6. Update on ZN using IB TWS:
    I can currently get a stop-limit order to be tagged to execute outside RTH (but NOT a straight stop order).

    By the way, does anyone know if ECBOT would reject a marketable limit order if it is too far away? (i.e. I dont want to set a stop-limit gap so wide that my marketable limit order possibly gets rejected when the simulated IB order gets triggered).

    -clip
     
  7. Steve,

    My FUT is already set to trigger outside RTH. (I did this a while ago and since then have never had to modify my order tickets each time). In fact, until tonight it had been a while since I had seen that pesky clock :)

    I guess it's stop-limits for now?
    (Luckily, IB has _plenty_ of order options)

    Thanks,
    Clip
     
  8. Update:
    ZN can take stop orders as usual again. (i.e. can once again enable trigger outside RTH).
    I haven't changed a thing on my end since last night.
    Does anyone know what happened?
    Minor exchange issue?
     
  9. Update:

    My ZN stop order has changed to 'only trigger during RTH' with the clock displayed also.
    It just automatically changed. I haven't touched TWS since I entered the original stop order.

    Does anyone else have this problem or know what is going on?
     
  10. Steve_IB

    Steve_IB Interactive Brokers

    Are you sure you're using TWS865 per my first post?
     
    #10     Dec 4, 2006