Are IB losing the plot?

[Austin&Liz]

Hi candles

We have an account with IB & use the TSim+ API to carry our real & simulated trading which works v.well. In addition TSim+ is free & well-supported.

We've not used TSim Lite but the website help or FAQ's may be able to sort you out.

Cheers

A&L

 

[JonnyT]

BBB,

Wrong wrong wrong.

On Globex Stop Limit orders have the highest priority. They are the only Native order on the Exchange...

Everything else is converetd to them by your broker.


Frugi,

You needed a Buy Stop Limit Order...

JonnyT

 

[oatman]

I'm not a simulator, I was just testing the different order types. Going by the demo, forget it!
frugi, I saw that warning, bit worrrying, I'll have a look at the Brackets.
Thanks all for your comments.

 

[BBB]

JonnyT-
Rubbish, rubbish, rubbish!

Who mentioned Globex anyway? There are more markets than Globex.

I think you will find that SL orders have the lowest priority on CBOT, LIFFE, EUREX, NASDAQ, NYSE etc. If you were an ex local you would understand why this is.

I believe that orders on Globex are converted to Limits anyway, not Stop limits. This may help you find out some more and help you in your education:

http://www.cmerulebook.com/cmewg/wg.dll?page&file=c5globex#bm_539

Good luck

 

[JonnyT]

Hi BBB,

The example given was for the EUR/USD future on Globex...

I am fully aware that each Exchange has its own nuances.

Agree Stop Limits are converted to Limits on Globex when triggered but you will get a better execution in fast markets using a Stop Limit to enter or close than using Market or Limit orders do to processing delays through your broker etc. (My slippage reduced significantly by using them).

JonnyT

 

[BBB]

JonnyT - sure, they are a good way of minimising slippage, but because the 'window of execution' is small(er) they get the low priority. Both the broker and exchange have one goal - to execute as many trades as possible.

I don't disagree with your last point ( I dont currently trade Globex, but I am thinking of going back to futures - so may do so), but I dont understand it. Surely a MArket Limit will stop slippage just as much as a Stop Limit (due to the Limit!), and getter a faster/better fill in a fast market as there are less parameters in the processing???

As for contracts, I take it the EUR/USD is the Euro FX contract? Whats the Yen like?

 

[Henry]

I just went to the tradingsimulation site and downloaded the TSimlite version. It says that you can "get free live charts to trade from right here at Trading Simulation" I clicked on the free charts link but no charts actually came up, and no other option, i.e download charts. Just info on how to change the symbols etc...

Candles, I just tried my free charts page and it's working fine from here. The charts are in a frame, perhaps your browser doesn't support frames? You can always email me (address on the contact page at www.tradingsimulation.com) and I'll try and help further.

Regards,

Henry.

 

[JonnyT]

Hi BBB,

In a fast moving market (EUR/USD really moves on news) getting a Limit order through the Brokers systems to the exchange is too late.

Think of it this way:

1) The market moves
2) The Broker updates the price to you - i.e a delay
3) You send the order to the broker- transmission delay
4) The broker parses the order and sends it to the Exchange - delay through Brokers backend systems and transmission delay
5) The Exchange deals with the order.

By having a Stop Limit resident on the exchange you stop 1 to 4 which beleive me with this instrument and IB does matter!

JonnyT

 

[BBB]

Jonny - I would have thought the more complex the order, the longer it would take to process - a larger hindrance in a fast market. The only benefit I can see in a SL order in a fast market is that you have more control over where you will accept a fill - which I must say is a huge advantage in a fast market. As said earlier - never traded futures on Globex, only the floor.

Do you have experience of other Brokers such as Refco, GNI, Man?

 

[JonnyT]

No I only trade with IB because of there cheap fees and especially the API. I never manually trade!

One system I trade could not work efficiently without Stop Limits as it trades news.

As it happens my Stop Limits have never failed to get a fill and I limit slippage to 2 pips.

Remember the broker IB do not transmit every tic so by yhr time my software gets a price change this market could and does move 20-30 pips away! I've made 100 pips in 3 minutes once!

JonnyT

 

[BBB]

Would more bandwidth help?

That sure is some volatility there! Someone told me the benefit of forex was the reduced volatility - obviously not in the futures!

Good to see you were on the right side of that 100 tick move!

Out of interest, on the LIFFE floor you only tended to get good fills if you traded 5, 10,20, 30, 50 lots etc. Very difficult getting filled for say a 13 lot (which was sometimes needed as I was hedging options). Is this true of Globex (or other electronic platforms)?

 

[JonnyT]

No its not, the longer your order has been on the Exchange, the more priority it gets.

Forex might not move in percentage terms like shares or indices but EUR/USD is moving 100-200 times spread per day. Yesterday 300 times.

I cannot see any other markets that consistently move like that!

JonnyT

 

[maychb]

IB for securities?

No I only trade with IB because of there cheap fees and especially the API. I never manually trade!

One system I trade could not work efficiently without Stop Limits as it trades news.

As it happens my Stop Limits have never failed to get a fill and I limit slippage to 2 pips.

Remember the broker IB do not transmit every tic so by yhr time my software gets a price change this market could and does move 20-30 pips away! I've made 100 pips in 3 minutes once!

JonnyT

Hi JonnyT,
Do you use IB for Forex trading or US securities trading? Is it user-friendly for securities trading? Also, do you think IB offer good spread (considering it charges low commission fee) ?
For Option trading, will you recommend using IB or OptionXpress?


Thanks
May

 

[JonnyT]

I only use IB for futures.

JonnyT

 

[Trader333]

maychb,

Also, do you think IB offer good spread (considering it charges low commission fee) ?

IB are not a spreadbetting company and, therefore, do not determine the spread. All they do is match Buy orders with Sell orders. The spread is determined by those in the market who wish to trade at the given price.

This means that for a stock with good liquidity (more than 1 million shares traded per day), you will usually get a reasonably tight spread ie 1c to 2c and sometimes even 0c. However, on a stock with poor liquidity the spread can be very wide but this is not decided by IB only by those who have orders for the stock.

I have found IB to be fine for trading US Stocks as have many others on here but if you are concerned about the spread then I suggest you trade stocks that have good liquidity only and the spread should not become a problem for you.


Paul

 

[jitasb]

A quick query about IB please.

Are they web based and so can be used from different PCs with a browser ? E.g. I can use Comdirect from home and from work. Or is it a downloadable app, so it can only be used from one PC ?

Thanks in advance.

 

[roguetrader]

A quick query about IB please.

Are they web based and so can be used from different PCs with a browser ? E.g. I can use Comdirect from home and from work. Or is it a downloadable app, so it can only be used from one PC ?

Thanks in advance.

They do both.