IB - smaller increments

Discussion in 'Forex Brokers' started by TradingWise, Aug 6, 2005.

  1. Just wondering, will IB consider smaller increments of for example 1/10th of a pip in the future, like applied by Oanda? This would allow the spread to become even tighter.
  2. I can't imagine that (pipettes) happening at IB, ever.

    The real issue with IB forex is not spreads -- which are second to none, retail -- but routine slippage of 1, 2, 3 and more pips on stop orders in ordinary, not fast, market conditions.
  3. Remiraz


    dude, pipettes at Oanda are made-up. they are not real. NO ONE quote in 1/10th of a pip.

    you know how Oanda does it? they have it change RANDOMLY. Yes! Randomly! it still goes up/down by minimum 1 tick but they just change the last digit (pipette) to a random number each time!

    it thoroughly SCREWS people entering with limit orders because if u set say BUY 1.2005 and the ask go to 1.2003, then you're not executed even thought without the random pipette you would have. Another scenario : Buy order at 1.2000, if price goes to 1.2008...you'll get filled at 1.2000 less the 8 pipettes. therefore this "smaller increments" actually adds a cost of 0.1 to 0.9 to every trade. Is this what you want? I'll rather have my 1 pip spread thank you.

    CME Forex Futures has 1 pip spread. IDEAL PRO has 1-2 pip spread. Its the lowest it can go unless the official FX market start trading in pipettes.

    IDEAL PRO has slippage?? :eek:
  4. not sure if IB 's IDEAL PRO FX has slippage on stops ... but perhaps one can enter a stop / limit order there , and thus there will be no slippage
    ( maybe DEF or Steve can answer this )

    ( of course in fast market conditions you might not
    get filled either )
  5. It works both ways, if you have a long stop at 1.20196 and the market moves from 1.20198 to 1.20188, your stop is executed at 1.20196. So you save anywhere from 0.1 to 0.9 pip. In the same way, you can lose 0.1 to 0.9 pip on take profit orders. It cancels each other out.

    Your first example is factually incorrect. If you place a limit buy at 1.20005 and the ask moves to 1.20001, you get filled at 1.20005.

    In the end the net effect will be about zero. Except of course you didn't pay 2 pip spread but 1.5: huge advantage!!

    And again, there is no 'official FX market'. IB can introduce pipettes any time it wants. Anyway, I was just curious if IB would ever introduce pipettes, just curious :)
  6. Remiraz


    If i place a Buy Limit at 1.20005 and the price moves to 1.20001. I don't get filled. It'll only trigger if price moves to 1.20005 and above. Meaning i'll get filled at 1.20005 when price moves to or beyond 1.20005.
  7. Remiraz


    Reuters Interbank. CME FX Futures. Sounds official enough.
  8. I mean the rate does not exactly have to hit your limit pipette to be executed. That is what you claimed right? I don't understand how you can make the claim pipettes cost you money, it works both ways. Do you still believe pipettes cost you money?

    Reuters interbank is not the official spot fx market. It's just one of the places where spot fx is traded. It's as much a location where spot fx is traded as IB or Oanda.
  9. Trent


    Man you are confused.

  10. Remiraz


    strange. IB, Oanda, Refco and all the OTC dealers claim they get their quotes from Interbank. This "interbank" has to be the source right?

    you sure? i was under the impression that the rates has to touch or go thru the limit pipette to be executed. from all the complain posts on Oanda forums regarding how pipette is ripping them off. :D
    #10     Aug 7, 2005