IB Globex stops

Discussion in 'Index Futures' started by stevene9, Aug 30, 2001.

  1. voodoo this is a globex specific discussion
    #31     Feb 6, 2002
  2. I noticed that, and my post is Globex specific, all but the last two lines of it.

    #32     Feb 6, 2002
  3. Btw, the algorithm for simulating market orders on futures exchanges is explained on the web site.

    Futures Market Simulation

    Price capping is used to obtain the best price in the market while increasing the probability of an execution. Futures Market order simulations are submitted at .3% better than the best bid or offer. If the order becomes non-marketable, the best bid or offer is recapped at .3%.

    #33     Feb 6, 2002
  4. There you go CdnTrader. If that is true they place a limit order about 3.00 points away from the current price after your stop is triggered. If I am reading it right, they change that order by another 3.00 points if it is not filled. That is the same thing you can do with stop limits then, without having to worry about bad ticks.
    #34     Feb 6, 2002

  5. yes the current price "after" the gap.
    #35     Feb 6, 2002
  6. sorry my mistake.
    #36     Feb 6, 2002
  7. The real problem with IB's method of stops is the lag they put into the system. At a specific price there are N number of contracts sitting as limit orders waiting to be filled. When your stop price hits there you have to wait for IB to get the quote and then submit the order. By this time everyone who doesn't use this primitive system has had a chance for their native globex stop-limit orders to get off. So basically you are always the last in line when getting your stop filled. This manifests itself especially in fast markets when it is common for IB stops to get blown through by a tick or two. I don't care about IB's method for stocks where it may have some rationality because the data is so dirty. But globex data is very clean and should not be treated the same.
    #37     Feb 6, 2002
  8. def

    def Sponsor

    where do you come up with your info? If you are going to slag off a competitor, you might as well get your facts straight.
    Fact: IB gets its feed direct from the exchange.

    You can use a stop limit at IB and set your own stop as well. you don't have a lock on that service.

    this whole conversation becomes moot when IB moves the stops to globex.

    as for sending in a price greater than the market price, it does not get changed for futures. Thus if you want to set a stop limit 50 points higher, it will get entered with that price.l IB doesn't change the price.

    For stocks it needs to be changed because there are rules requiring orders to be sent to the exchagne within the NBBO.
    #38     Feb 6, 2002
  9. def

    I get my info from IB clients I have talked to and if you would open your eyes and look at the previous posts you can read about it from other IB clients. If IB gets it quotes directly from Globex how did those two situations occur?

    I know you can use a stop limit at IB, that isn't the issue. The issue is whether they hold the stop limit on their servers (like they do regular stops) or do they give it to Globex to hold? If they hold it then there is no advantage to using it with IB because you are still going to have the same problems posted above with stop limits as you do stops.

    The conversation isn't moot, yet, as talking about moving stops to Globex and being allowed to do it are far away.

    As far as the limit price getting changed I am just using the information provided by voodo_invest. If it is not true, then you are at even greater risk. If you walk away from your computer and your stop loss is hit and then the market gaps through the limit price generated by IB you are still in the market. If the market keeps moving away your losses keep adding up even though you might think you are out of the market.

    Read my posts and the others clearly before you comment. You are making no sense. What percentage ownership do you have in IB?
    #39     Feb 7, 2002
  10. Craig, Voodoo's post refers to stop market orders not stop limit orders. The stop limit order would go in at the price set by the client. The market stop orders would go in at the current price "after" the gap + 3 points.

    But my original question to def remains. Why would IB prefer to see limit stop orders vs market stop orders?
    #40     Feb 7, 2002