IB new forex spreads

Discussion in 'Forex Brokers' started by oktiri, Feb 27, 2005.

  1. Hoi

    Hoi

    Yes it addresses both issues.

    First, it’s a bit odd that two posters have a walk-through a Stop....Most of the time it is a StopLimit and then it is in 99% of all cases due to a traders-mistake of setting the Limit-price to tight to the Stop-price (which should be wider than the Spread, otherwise it will walk -through).

    But I have seen cases in the past (which I analyzed to the bottom) that a Stop or StopLimit did indeed not work on the IB-Server, it is because of this fact, that ButtonTrader has a safe-guard-procedure, which monitors the Stop-processing on the IB-server....as soon as it notices that the stop does not function (within 2 seconds) ButtonTrader will intervene by forcing an immediate close (fully automated).
    But I have to say that I have not seen it recently in real trading (it happens regularly on the demo and simu-accounts, but is very rare in real-trading or an issue of the past (IB is on top of it to solve issues like this)).

    The other issue is the way the triggering works on the IB-server. It will trigger a Buy StopLimit when the Bid-quote hits your Stop-price (or passes it). Then the Ask is already a few pips higher, so your Limit-order (of the activated StopLimit) might enter the market somewhere in between the Bid and Ask. This Buy will not execute (is not on the Ask) but becomes the best Bid (and when the market runs higher then you have your walk-through already).
    That is the way triggering works on the IB-Server, which is quite normal, by the way, and is the wanted behavior by many traders....But not by all traders...so ButtonTrader offers you several other triggering-mechanisms (a bit too much to explain them here (see Ref-guide)), but in short: you can select triggering on Bid, on Ask, or on Mid-Point, etc.
    So if you select Ask-triggering for the case above. Then the trigger will work much faster and you will not have any slippage (related to the trigger-price). But of course also this triggering-method has its disadvantages (when the market spikes with a wide spread it might close your position earlier than wanted {but also this can be solved, by using a hit-counter, which delays the trigger by counting first a number of spike-hits (see Ref-Guide)}).

    Hope it helps
     
    #331     Jan 10, 2006
  2. gowron8

    gowron8

    Hoi,
    Thanks for the detailed reply.....very impressive.
     
    #332     Jan 10, 2006
  3. Lucrum

    Lucrum

    Just for the record the stop orders that did not execute for me on IdealPro were not stop limit orders.
     
    #333     Jan 10, 2006
  4. Hoi

    Hoi

    Then I advise you to contact IB, if you have the TWS-logs (and audit trail), so they can look at it and solve.
     
    #334     Jan 10, 2006
  5. Lucrum

    Lucrum

    I should probably note that stand alone stop orders by them selves work fine. It's only bracketed/OCO orders that don't work as advertised.
     
    #335     Jan 10, 2006
  6. I do not need to call HK office to confirm this
    but on my TWS screen I do not see
    USD - EUR pair quoting

    and was wondering if any other retail
    customers also show IDEALPRO down
    for this major pair at this time

    FX futures on CME are working fine by the way
    at this time for me

    :)
     
    #336     Jan 22, 2006
  7. TGM

    TGM

    it is quoting fine and it is now quoting in halfs. maybe you need the latest TWS upgrade????????

    I am on the US servers
     
    #337     Jan 22, 2006
  8. Lucrum

    Lucrum

    I'm seeing the halves as well.
     
    #338     Jan 22, 2006
  9. TGM

    TGM

    IB spreads have been widening out lately to 2 ticks ---I wonder if they are having problems with liquidity providers????

    I have been noticing this more often of late. I thought it was because of the halfs being quoted. But right now it looks to be something differant.
     
    #339     Jan 22, 2006
  10. ozzy

    ozzy

    HUGE FUCKING SCAM GOING ON IN IDEAL PRO.

    I HIT THE BID AND THE ORDER DOES NOT FILL. IMMEDIATELY THE BID/ASK CHANGES. WTF IS THIS !!

    HAPPENED 5 TIMES TO ME TODAY !!

    PLS EXPLAIN, THIS IS ABSOLUTELY RIDICULOUS. AT OTHER TIMES IT TAKES ABOUT 5-10 SECONDS TO EXECUTE THE ORDER. UNBELIEVABLE. I GUESS I'LL USE GLOBEX FROM NOW ON.

    AND YES I'M SHOUTING.
     
    #340     Jan 22, 2006