Stop Execution at IB

Discussion in 'Order Execution' started by cscott, Aug 7, 2006.

  1. cscott

    cscott

    Can someone tell me why my Stop was executed 4 pips away at 219.79, instead of 219.75? Here's my audit trail from InteractiveBrokers.

    ModifyOrder
    MsgType OrderCancelReplaceRequest
    SendingTime 20060807-14:15:30
    ClientOrderID 1900495398.1
    OrigClOrdID 1900495398.0
    AuxPrice 219.75
    ClearingAccount XXXXXXX
    ClOrdLinkID gy1
    OrderQty 18000
    Side Buy
    OrderType Stop
    Symbol GBP
    SecurityType CASH
    IBLocalSymbol GBP.JPY
    TimeInForce GTC
    ContractID 14321015
    CumQty 0
    6211
    6238
    CheckSum 183

    Filled
    MsgType ExecutionReport
    SendingTime 20060807-14:28:24
    OrderID 0002b945.0000da3a.44d6bf3a.0002
    ClientOrderID 1900495398.1
    ExecID 0001ced8.421fd4d3.01.01
    ExecType Filled
    ExecTransType New
    OrdStatus Filled
    Symbol GBP
    Side Buy
    ExDestination UBSFX
    SecurityExchange UBSFX
    OrderQty 18000
    AuxPrice 219.75
    LastShares 18000
    LastMarket UBSFX
    LastPx 219.79
    CumQty 18000
    LeavesQty 0
    AvgPx 219.79
    SecurityType CASH
    ClearingFirm CITI-FX
    ClearingAccount XXXXXX
    Account U280350
    ConQPath GBP/CASH/JPY/14321015/41597/UBSFX/32/GBP.JPY/GBP.JPY
    TransactTime 20060807-14:28:24
    ClOrdLinkID gy1
    6209 ReduceOnFillNonBlock
    OrderType Stop
    TimeInForce GTC
    OpenClose Open
    OptionAcct c
    CustomerOrFirm Customer
     
  2. You might have wanted to use a stoplimit order. If your not familiar with the difference take a look at the help section on the IB website.
     
  3. Stops are just market orders that get activated when the market trades at your stop level. I see the spread for GBPJPY on IB right now is 6 pips (11AM NY time). So you could expect slippage at least as much as the bid-ask.
     
  4. As Sam said, you need to use a stop limit to get a guaranteed price. With a stop market you get a guaranteed fill if the stop criteria are hit, but your trade will execute at the bid (for a sale) or the ask (for a purchase). Remember with the stop limit it may trade through your price but not fill.....

    SSB
     
  5. cscott

    cscott

    I figure it is just slippage. I prefer to make sure that it is filled and that is why I prefer a stop over stop limit order. Getting filled is more important to me than the price, thus I believe I am correctly using a stop order.
     
  6. alanm

    alanm

    What is it that you think was wrong?

    Looking at T&S, your order became a market buy order when the bid hit 219.75 at 10:28:23 ET. At the same time, the offer went to 219.79, which your order then took.
     
  7. cscott

    cscott

    I see . Thanks.