I ran across another thread here mentioning IB's new implimentation of "globex stops". This is something that I really liked initially. After doing some fact finding I've come to the conclusion that it is not what it appears to be. At least it don't work the way I had wanted it to. The following is a message I posted on the IB msg boards and below is the response I got. IB's RESPONSE: Now I'd like to open this up to some discussion on this issue and see what everyone else thinks? Did you believe as I had that after I submited my order I could immediately submit a stop order and be safe from IB's systems going down?
not really. i gave up trying to be 100 % protected from losses due to system errors about a year ago. personally i do not believe it is possible despite any ones claims ( by the way: IB is my current and favorite broker) and as such my particular trading style just factors this risk into the formula. kinda like accepting there will always be drunk drivers on the road no mater what measures are taken.
IB is setting up globex held stops. I think they are waiting for the new CME connectivity to be rolled out in Aug/Sept though.
Cdntrader, Thanks for the info. Where did you hear about this at? Do you have any links or other information to back this up? I'm surprised I didn't get more replies than this. I see so many talking about globex stops with IB when in fact there is no such thing right now. All the IB stops are still held on IB's computers. There also use to be a big debate where broker X would say that all their stop orders go to globex, while IB's stop orders reside on their computers. Now while this is still true in IB's case. Do any of the other brokers claims still stand? From the material I've read I would say no. Since Globex only allows limit orders, then how can any other broker claim their orders reside on globex? I'm not saying I'm right about all these issues. I'm looking for further clarifications. If any of you guys can start pointing to specific information backing up or refuting my claims I would appreciate it.
Just ask on the IB Forum: IB Forum http://www.interactivebrokers.com/cgi-bin/discus/discus.pl No real need to discuss these IB issues here when you can get the answer from the horse's mouth
Cdntrader, Thanks, I've been over there quite a bit lately. Did you have a specific post in mind over there? It's possible that I could have missed what I was looking for. I'd appreciate any more info you can give regarding what you stated earlier. I have yet to read anything along those lines, so I'm curious to know what source you have. Thanks
First of all, IB doesn't do it like my broker does. I only say this based on an email I got from IB stating that they won't execute after hours stops. My broker does, so there is obviously a difference. As I understand it, globex converts all market and stop orders to limits 4 handles from the market. So if you want to buy at the market, and the price is 875.25, globex converts it to "buy at 879.25 limit." and with stops, for instance your "sell at 875.25 stop" is entered when 875.25 trades as "sell at 871.25 limit". But getting back to IB, I've been stopped out enough overnight to know my stop orders are executed after hours. Why IB doesn't do it that way I don't know. Oh yeah, there is always an argument going about under what condtitions your mkt or stop order wouldn't be filled based on the globex conversion. (Me? I've got enough risks to worry about already, so count me out of the discussion. I'll start worrying about not getting filled if it ever happens to me.)
- IB currently uses simulated Globex stops (inactive outside RTH !) - IB will introduce native Globex stops (stop limit) , but no timeframe specified - Conversion of MKT orders to LMT orders is done by IB (not by Globex)
You can learn more about Globex connectivity and the types of orders supported by different APIs here: http://www.cme.com/electronic_trading/access_development/index.cfm