Do you know anything about the kind of risk exposure IB has been exposed to with these kinds of trades? I assume since most of IB is run by computers that a computer executes the VWAP? Is this true or is thre people involved. If you cannot say I understand. If the computer released small parts of the orders throughout the day that it would closely approximate the VWAP and over time would have a 50/50 chance of winning or losing on that proposition. Is this IB's logic? I know info may be top secret proprietary stuff... but this is what I started the thread to learn about.
I know a vendor that will execute these for .01/sh That means IB could charge .01/share and still be profitable. So "what do I think".... I think IB is just as capable of routing them out as the next guy.
Anyone know or have an opinion on if VWAP trading is on the rise or fall?? I heard that people are trending away from wanting to execute these trades...