STOP MARKET oRder for QQQ on IB TWS

Discussion in 'Order Execution' started by richk, Dec 26, 2002.

  1. richk

    richk

    Hello,

    I am looking for experiences of somebody who is using Interactive Brokers for QQQ trading and also is setting physical stop market orders.
    I would like to know how IB handles misprinted trades outside of bid/ask range and if/how such trades can affect such order.

    I want to use to use stop market orders for my stop-loss positions by I do not want to be out by one trade which comes in price far from bid/ask.

    Can anybody advice ?

    Thanks in advance.
     
  2. def

    def Interactive Brokers

    If you get a fill out of range, the exchange may call to bust the trade. If you get a fill that you think should be a bust, you can call the help desk and request them to call the exchange to bust (all exchange fees for requestion a bust will be passed on to you).

    For protection, IB's default stop orders for NASDAQ stocks are based upon double bids or asks. This way, a bad print is less likely to trigger a stop. From the web site:
    Sell Simulated Stop Orders become market orders when the last traded price is less than or equal to the stop price. Additional sell stop order protection is provided for NASDAQ stocks and US Equity Options which are only triggered after two offer prices are less than or equal to the stop price.

    You can change the default stop triggers via the configure bar if you do not want this added protection.

    This link has additional info: http://www.interactivebrokers.com/html/tws/stop_orders.html
     
  3. richk

    richk

    Thank you def, but QQQ is not Nasdaq stock. It is AMEX listed and also is traded on ECNs and NYSE. So I am not sure how it work in combinations of these markets ....
     
  4. def

    def Interactive Brokers

    sorry about that....

    you can set the trigger as you wish via the configure. the default for listed securities is the last price. The QQQ's are so deep, I can't imagine a bad print and thus shouldn't be too much of a worry. To be safer, I'd recommend the use of stop limits.
     
  5. richk

    richk

    stop limit does not solve probem by false triggering by misprinted trade.
     
  6. def

    def Interactive Brokers

    If you change your default to double bid or last the likelihood of a bad trigger is lowered. Outside of that there really can't be any guarantees.
     
  7. DEF-Just a note. Last time I checked the NYSE & AMEX were accepting BUY & SEll Stop orders on ETF's QQQ, SPY , DIA etc. If IB's system routes to the NYSE or AMEX, I imagine they accept stop orders. REDI+ accepts stops on all NYSE & AMEX stop orders . NASDAQ does not accept stop orders, if your software accepts stop orders, it is a function of the software, since NASDAQ MM's , do not accept stop orders( as far as I know).


    Gene Weissman
    Lieber & Weissman Sec., LLC
    gweissman@stocktrade.net
     
  8. def

    def Interactive Brokers

    Gene, thanks for the update. Being overseas I don't know all the ins and outs of US execution these days. I'll have to check with our US office to see how we treat them.

    ? If a stop is held at the AMEX for QQQ and it gets triggered by the last (is it the last on any exchange?) and an ECN such as ISLD has a better bid than the AMEX, what price and how fast will the AMEX specialist fill you ?

    If it is on the AMEX price and/or the speed is a more than a few seconds, my guess is that we'll deal with the stop internally with the objective of getting the best fill in terms of price/speed.
     
  9. If a stop is held at the AMEX for QQQ and it gets triggered by the last (is it the last on any exchange?) and an ECN such as ISLD has a better bid than the AMEX, what price and how fast will the AMEX specialist fill you ?

    If it is on the AMEX price and/or the speed is a more than a few seconds, my guess is that we'll deal with the stop internally with the objective of getting the best fill in terms of price/speed.



    DEF-Good question. I will check with the AMEX today and post later . Have a good New Year in Euorpe!



    Gene Weissman
    Lieber & Weissman Sec., LLC
    gweissman@stocktrade.net
     
  10. def

    def Interactive Brokers

    Gene,

    Thanks (I'll be celebrating 7 hours earlier in Hong Kong). Happy New Year to you as well.
     
    #10     Dec 30, 2002