How does the IB computer calculate the market prices in the account window for options? They seem to be incorrect most of the time, too high when the market rises, too low when it declines. Any ideas?
market moves so fast how can you be sure the quotes are right or wrong? how much of a time lag makes a difference?
They are different in option trader when compared to the account window. Why are they not the same? The option prices are not moving that quickly and are at prices never seen in option trader.
The market prices shown against positions in the account window are only updated every few minutes unless a position changes in size. From my observations of the API I think it is about every three minutes but I could be wrong about the exact frequency. Prices are not streamed into the account window as they are onto an ordinary TWS page.
the theoretical values change with the market. (next time please give some thought to how you title a thread). according to your own statement, your option chains and market prices used for trading are correct.
Apologies, the prices on optiontrader are always correct. So you are using an option model price, but not the model prices in option trader, in the account window? For instance the eurostoxx50 3550 call is 90 bid at 1.40 , the model is showing .98 but account window is showing .56. What price is used if my account has to be liquadated?
i can't answer that as I do not know the product and do not have access to the information or your account. Differences will occur between SPAN, TIMMS and other types of margining. For more information, I suggest you send a note to the help desk.
Theoretical prices are used in account window and for liquidation purposes of risk-based portfolios. They can differ from real bids/asks. I agree that it does not work best all the time. On the other hand, if we use real market prices other problems could occur. Sometimes, there are no bids and/or asks. Also, options market can be very volatile and you probably do not want your account valuation depend on sudden moves. We have plans to improve option valuation but it is a big deal.