Switching to lite

Discussion in 'Interactive Brokers' started by NewTraderAdventure, Oct 15, 2019.

  1. Thanks, I would need to look further into their definitions. 99% of shares executed at market quotes or better sounds very hyped and can mean all sorts of things. Do they mean with "market quotes" the arrival price at the matching engine of the exchange or the market quotes seen on a trader's screen when they hit the submit button? Because the latter is how IB defines it. They can precisely measure it because all IBPro orders go through TWS/Gateway which locally sits on the trader's machine and hence at order submission IB knows exactly which prices were shown on the screen.

     
    #31     Oct 16, 2019
  2. vanzandt

    vanzandt

    I'd be willing to bet it's the trader's screen.
    Sometimes there seems to be a lag, especially on options. Its pretty annoying actually.
     
    #32     Oct 16, 2019
  3. If its price improvement between the actual fill price and best mid/offer shown on a trader's screen when submitting the order then that is quite impressive I have to say. But even how Markit, who does the price improvement stats for IB, shows price improvement leaves a lot of questions unanswered.

     
    #33     Oct 16, 2019
    vanzandt likes this.
  4. That is 100% incorrect.

    If you route a limit order directly, you are still subject to sub-pennying.

    If you route a market order, your order is still subject to co-location and faster lines between exchange servers.
     
    #34     Oct 17, 2019

  5. I found it interesting just saw an ad for Fidelity, that mentioned idle cash paid ~ 1.58% and they don't sell order flow. They are all going after each other :)
     
    #35     Oct 17, 2019
  6. Disagree, if you route full lots directly there is nothing someone else can do to front-run you. You hit the matching engine before anyone else knows, in fact.

     
    #36     Oct 17, 2019
  7. True, its open hunting season, one beggar underprices the other beggar.

     
    #37     Oct 17, 2019
  8. Do you disagree that a directly routed limit order (not a marketable limit order) can be subject to sub-pennying where you pay an opportunity cost because your order is resting on the exchange not getting filled while sub-penny orders put in front of your order gets filled.
     
    Last edited: Oct 17, 2019
    #38     Oct 17, 2019
  9. Nothing you can do about that , if retail orders are getting sold and grabbed.

    We are talking about TAKING liquidity, where you are not going to get frontrun.
     
    #39     Oct 18, 2019
  10. qlai

    qlai

    Ok, this guy is taking liquidity on fast moving illiquid stocks ... Let's see what he finds. My prediction he will not be able to trade his strategy as effectively. However, he used to trade from Italy and did just fine.

     
    #40     Oct 18, 2019