I've had the reverse situation happen, where IB received a bad tick that triggered one of my stops. If the stop order lived on Globex and not at IB, it would be less likely that my stop order would have been hit (and if it did get hit, many other orders would be executed as well). Then there was the time a few months ago that IB's connection to Globex went down, and my two stop orders did not get filled (both resulting in a nice profit on a nice range day, with one of buy stops just a few ticks from the low-of-day). But overall IB has been a great execution platform for trading Globex. If stops could live on Globex instead I believe it will be much more reliable. No matter how much redundancy and fault tolerant systems IB puts in, it is always more reliable to have your orders live on the exchange than one hop down.
Are stops held on Globex visible to anyone (for example someone with access to a Globex terminal?) I assume that's not the case, but just wanted to make sure. Another thing, does anyone know what kind of orders are accepted by Globex. There is no information on this at the cme website. I found bits of info on this here and there, but nothing official. (I am not asking about the types of orders supported by IB, I already know what those are.) One more question, if you send a limit order (through IB) directly to Globex is it transmitted to Globex in it's original format, or is the limit price changed just as it is when using best execution (I understand IB does that for both equities and futures?) voodoo
voodoo, given the holiday i haven't been able to confirm your questions regarding the order price. i do however believe your order will be handled the same for globex as it is for the other futures markets - i.e. what you send gets sent. In other words if you have a 10 lot to buy and submit a higher price than the offer, it will take out the book until your price is reached or 10 lots are executed.
I have a question regarding the modification of stops on Globex or on other exchanges. This is something I have grown quite nervous about since I have had a few disconnections due to my ISP. When I enter a position I always have my stop already prepared and sometimes even entered. In any case, as soon as I get a fill I enter the stop. Now I keep this stop larger than my actual stop which is mental when the mental stop is hit I exit at the market. Since the stop is somewhat large for me I need to modify it as soon as the position moves in my favor, to slightly below entry then breakeven then locking in a small profit. Now my question is when I click MODIFY , raises the stop then hit T, is my initial stop still in place or is it canceled while the modification is made until the new order is acknowledged by the exchange? Until now I have entered new stops as the market moves then cancel the old one but end up with 3 order lines and it gets confusing. Thanks
Maybe anybody knows how much points the stop may be away before IB really routes it to cme interface ?? If we knew, one could use DDE to create a "trailing" sort of stop that is always at the exchange.
Stops are never submitted to Globex, they're synthetic. Once triggered limit orders are submitted. It's all explained on the IB website. voodoo
There are two problem with stops held on IB's servers, both stated above. If thier quotes go down or are delayed, your stop loss will not be triggered and you will still be in the trade and potentially lose more money than intended. Also, if their quote system gets a "bad tick" your stop would be triggered even though the market did not trade your stop price. We use J-Trader and tell clients to only use Stop Limits which are accepted by Globex, taking the order of the client's and our hands. We also offer $4/side rates, which is a little more than IB, but will pay for "missed" stops by IB. www.ApexFutures.com Craig
Def said re stops held at globex: "one other piece of info i can pass along: we are testing a new interface with the CME. If it works as advertised and they allow native stops, IB will offer them. "
If Globex holds stops for IB how do you explain IB clients getting fills on stops not hit or not getting fills on stops that were hit? I'm not saying it is just an IB problem, all platforms have to hold stop orders - Globex does not accept them, period. That is why it is best to use a platform that allows stop limits that are held by Globex.