IB retail pit access or not ???

Discussion in 'Order Execution' started by local_crusher, Dec 22, 2005.

  1. I've never had an account large enough to trade SPs until I started with IB...but they haven't had them. Very interesting.....does the same apply to RL and ER2? What about MD and EMD? That could save me some commissions....I like to leg out of positions....buy one SP then counter with ES contracts until I'm flat....

    SSB
     
    #71     Feb 27, 2006
  2. alanm

    alanm

    I understand that they are fungible as far as the CME clearinghouse is concerned. What I'm more interested in, as SSB suggests, is how it will be implemented at IB - whether selling 1 SP or 5 ES on the floor will immediately flatten a +1 SP or +5 ES existing position in terms of buying power/perf bond requirements, account display, etc., flatten it overnight, or be carried as separate positions until you unwind them.

    I have experience from a couple years ago with 6E and E7, where, even though they were theoretically fungible, both positions were carried in my account, and I had to liquidate each position separately instead of just letting them offset each other at final settlement.
     
    #72     Feb 28, 2006
  3. ids

    ids

    Our implementation is:
    1. If you buy 1 SP and sell 5 ES futures, you will have all of them in the account. SPAN Margin will be 0 but haircut margin 6*$50 = $300 maintenance will be in effect.
    2. If you buy 1 SP on CME and sell it on GLOBEX, the position will disappear.
    The same logic is applicable to any double-listed futures.
     
    #73     Feb 28, 2006
  4. ids does this only apply to ES/SP or also to ND/NQ? Are there any plans to offer other pit traded futures such as RL, MD, etc?

    On another note will you be able to close out a long SP / short 5 ES position as a spread (assuming you use Globex)?

    SSB
     
    #74     Feb 28, 2006
  5. will retail accounts be able to arb SPX and ES
    round the clock or only during RTH ?

    *( note ... the arb is usually too tight )

    :p
     
    #75     Feb 28, 2006
  6. ids

    ids

    #76     Feb 28, 2006
  7. #77     Feb 28, 2006
  8. himself

    himself

     
    #78     Mar 8, 2006
  9. ids

    ids

    #79     Mar 8, 2006
  10. Don't go trading the Russell and naz on the floor thru the computer unless you really really have to would be my advice. I dont know about sp but probably the same applies. It is better to call the floor and get quoted a price you will be getting first. I dont know maybe IB can say if they have somone in the riing with one of the electronic terminals or if its a runner bringing it to a broker from a desk. Big difference im sure.
     
    #80     Mar 8, 2006