IB - weird forex trade

Discussion in 'Interactive Brokers' started by moo, Mar 12, 2009.

  1. moo


    Was trading EURJPY today via IB IDEALPRO. Entered order to buy 50k at 122.33 when market was 122.38-40. I was immediately filled at 122.2875! Market had not moved, remained at about 122.38-40 for a while longer.

    Now I don't complain, it was a pleasant surprise. But I wonder how could I get so much price improvement. I have gotten a bit better prices a few times earlier with FX (never with futures or stocks), but never more than one bp.

    Ten bps in yen is worth $1000 per $1 million lot... :)
  2. moarla


    but for your 50.000 only 50 :eek:
  3. I've had the same thing happen with USDJPY. I'm not sure why it's happened, but of course, nothing to complain about. But two possibilities: 1) Someone entered an order in IDEAL, and because of the wider spreads, entered it below your bid. IB automatically transferred your order to IDEAL to capture it. 2) A market maker transmitted a low offer which IB was able to execute against before you even so it on the screen.
  4. Perhaps your quotes were stale or lagging.
  5. moo


    Hurricane, that sounds plausible. Also I guess this would not happen with bigger size (like $1m).

    If IB quotes were lagging, that would be quite serious. Never seen that happen before in any market, fortunately.
  6. I have not seen lagging forex quotes either. The few times it has happened to me has been with amounts of $50-100k.