What's the best Options routing for preserving front-of-queue / first-to-fill at a given price?

Discussion in 'Interactive Brokers' started by d0rian, Jun 22, 2021.

  1. Dustin

    Dustin

    I agree with the other poster that you had stale data in a possibly volatile stock. You can post your fill here and we can determine that for sure. I trade XX,000 contracts per month and never see anything fill outside.
     
    #21     Jun 23, 2021
    sdtrader333 and Gambit like this.
  2. d0rian

    d0rian

    I'd be grateful to hear how I can solve it, since I don't think I'm any closer to doing so, despite having read all the replies ITT. Question remains the same: what routing options I should use to give myself the shot at first-in-queue priority at a given midpoint (again: if I'm fee-insensitive and I just want the fill, even at $1.50 - $2.00 / contract fee)
     
    #22     Jun 23, 2021
  3. traider

    traider

    Go and read up more about HFT and market making. You can't compete in this area anymore
     
    #23     Jun 23, 2021
  4. d0rian

    d0rian

    I have, and I'm reading more. You write as if I'm trying to beat algos at their own game. I'm not. Doesn't mean there isn't a way to optimize my own order submission to give myself the best shot at getting / retaining queue priority.
     
    #24     Jun 23, 2021
  5. traider

    traider

    Q: My next question is about exchange officials who have said that their order types and work is fully disclosed. Would you agree with that statement? A: A good example would be queue jumping which is a feature that is often marketed directly to firms, to high frequency traders primarily, which is not in any way supported by exchange documentation. There are a number of other perks, many of which are not disclosed yet or documented in any capacity. I came to the conclusion that a smart person could figure things out if they had access to the documentation. A lot of features people think are documented…but if you actually go and look for the documentation, you’ll find they aren’t. So how do people learn about it? They learn about it from other people in the industry. It’s a little bit of a closed club that really has to be broken for the markets to move on.

    https://www.iqpc.com/media/8807/24163.pdf
     
    #25     Jun 23, 2021
  6. taowave

    taowave

    Nonsense.....

    There is an inefficiency that exists due to the very reason you think "we" can't compete..



     
    #26     Jun 23, 2021
  7. Dustin

    Dustin

    I don't know about retaining queue priority if hft are using tricks to jump you (does this exist in the options market?), but you just need to do your research on option fees and post to the one that benefits the other party to take. I have a doc from my broker that breaks these fees down, pm me with your email if you want it.
     
    #27     Jun 23, 2021
  8. FSU

    FSU

    I thought I gave you a pretty good answer in my previous post (#3)

    You will have priority only on the exchange you send it to (and depending on the product not even necessarily then) If your offer is a good sale, it is likely a contra order will be filled on another exchange and you will be cut out. If a firm buys a brokers order flow, they aren't going to want to give a good trade to you, just because you are the best market. They will match it on another exchange.
     
    #28     Jun 23, 2021
    qlai likes this.
  9. I see options MMs walk away and that’s why I get filled at crazy prices because there must be a set risk the MMs take. No idea if it’s SUSQ or Citadel making the Market in certain stocks where the spread goes wild. My noob brain tells me they keep risk tight, let the book expand until things slow down.
     
    #29     Jun 23, 2021
    Gambit likes this.
  10. qlai

    qlai

    Are you talking equities or options?
     
    #30     Jun 23, 2021