What if your platform sends hidden info about your next possible trade?...

Discussion in 'Order Execution' started by traderum, Dec 9, 2009.

  1. I have the suspicion that the TWS platform does inform the market maker
    (and/or the brokers own trading team... ie. those guys at the broker who trade
    against their own clients by spying their actions etc...) about your intention
    when you open a mask and begin filling it... long before you push the final
    button to send out the order...
    Can this be true? :)
  2. jprad


    There is no spoon...
  3. def

    def Sponsor

    Completely false.

    If I'm not mistaken, you were making complaints about the paper trading account with similar accusations in another thread. I'm not sure what you're looking for in a paper trader but a paper trader can only do so much as it does NOT send orders to the market. I'll say it again, your suspicions are completely wrong.
  4. nassau


    Traderum, I believe you would have had a better result if you had stated that you believe that brokers not just IB.

    You are correct, that when a trader is using a platform that when a trader executes, sets up to execute a trade it is visible.

    If you do not execute or have working orders or set up to fill over a scaled in position you are noise to the market.
    When you click the bid or ask you have signaled the possibility of an order and the platform records the desired or possible desired position. Remember a BD needs to know the markets intentions to have the ability to provide shorts.

    Now whether they disclose this information to assist their balance sheet or provide market potential information to the MM is another question.

    Personally I agree with you that the information is disclosed as one can buy the information via levels or additional information as they can buy the news events early etc.

    This is also evident when using a scaled in entry or exit and now even more visible with high frequency trading.

    Good luck with your trades

  5. nassau, thanks for the confirmation.
    this is unbelievable, shocking, it's a big scandal!
    I don't find the right words to condemn such dirty practices of the brokers at the moment. Maybe more later...
  6. you better watch yourself - IB will close your account! trust me!
  7. Are you a sales guy at IB ?
  8. Thx for the warning.
  9. My initial conclusion of this is:

    The TWS is useless for placing orders via it.

    A better method is doing it via an own program using the API, or via a 3rd party program (for example Ninja Trader etc; though I have no experience with NT yet).
  10. the1


    Never mind him Def. It's just his Seroquel wearing off. We tried to get him on Prolixin but the Doc said no :(

    #10     Dec 9, 2009