Newbie Interactive Broker user

[bottomdollar]

Hi All,
I've set up my IB account to trade Dow mini (YM) contracts and have downloaded the trading platform. Though I've used online brokers platforms, CFD and also Spreadbetting trading platforms which were rather easy, the Trader Workstation is a bit baffling to me. I've gone to the tutorial which is extremely basic but I need more info (need to soak it up)!!
Just a few (quick) questions I hope you guys can help me with:

1. I've funded my account in £ sterling. However, the YM deals in USD.. how do I convert my cash into USD?

2. Is there a simulation mode of this software I can play with without actually trading my dosh until I can get used to the Trader Workstation software?

3. Where do I go to hunt for the futures symbol for the other charts I'm looking for?

Thanks all

BD

 

[frugi]

I can only answer question 1.

You don't NEED to convert into USD as sterling is automatically converted to USD at the prevailing rate in real time when you trade, but you can buy dollars by typing USD in the underlying column, then select cash, then USD IDEAL GBP in the contract selection window. Then click on the Ask price, change the order type to limit and buy the required quantity of dollars at your chosen price. Beware that after hours the spread will be large so you'd probably be silly to buy at limit ask.

Why then would you ever want to buy dollars?

a. If you incur losses you may have a negative dollar balance, on which you will be charged interest, even if you have a positive sterling balance that outweighs this.

e.g You start with £5000. You lose 100 YM points. Your account summary will be:

GBP 5000
USD -500
BASE 4722.23

assuming a rate of 1.8 $ to £. I'm pretty sure you will pay interest on the -500, although you will be paid credit interest on the 4722.23 as well. But why pay any?

b. If you think the dollar will appreciate against sterling.

c. If you want to hedge exchange rate risk by splitting your account into $ and £ so that fluctuations do not affect your buying power. I'm a bit hazy on how to do this, but while the dollar continues to fall I'm happy keeping my whole balance in £.

Clicking on Account will show you the relative balances of £,$ etc.

Sorry if I've poorly explained the above. It will make more sense when you've made a few trades!

 

[bottomdollar]

Thanks Frugi.. that was the most important question

I'll go and potter!

 

[Quercus]

Bd
In answer to your second question - I believe there is a simulator somewhere, but I've never used it myself. I seem to remember reading somewhere that the data was massively out of date compared to real time, and also inconsistent with regard to the time delay. Not sure how useful this might be for you. If you want a really great simulator, then use NinjaTrader, this costs about $30 per month for live trades. I believe you can download the "lite" version for free, and use it to sim trade for as long as you like without a charge!
With regard to symbol searching - I too have found this difficult. Ask on these boards for the main ones - JonnyT has been really helpful in the past. Be specific, however, as these symbols are different if you are using MyTrack as a data feed, as opposed to IB.
Good luck, and fire away with any more queries. I use the book trader myself, as I find this easier to handle!
Cheers
Q

 

[Beach Runner]

2. Is there a simulation mode of this software I can play with without actually trading my dosh until I can get used to the Trader Workstation software?

bottomdollar,
There is a Demo version of the software on the site. I think it's 15 minute delayed prices - or supposed to be.

 

[JonnyT]

IB allow you to connect TWS to a Demo Server as per their web site.

However I prefer to use a free front end to IB such as www.tradingsimulation.com which allows you to simulate off the real market and prices and gives easy single click entry and exit.

JonnyT

 

[sidinuk]

Have a look on Interactive Brokers website for symbols, eg here is globex:

http://www.interactivebrokers.com/cgi-pub/exchange_display_web.pl?einfo=usCME2&file=GLOBEX.html

 

[bottomdollar]

Thanks guys.. all been very useful. I forgot about the TSIM software and I think I'll give that a try tonight. The next step is finding some time to trade the intraday markets..

 

[bottomdollar]

Hi Guys
Just thought I'd let you know that I've downloaded Tsim+ .. had a good ol' play and even made $10 in my first DOW mini (YM) trade... all these flashing lights and numbers jumping all over the place makes it a bit confusing until I'm used to the platform and see what I'm actually doing.
Well, $10 - commission left me with $5.38 which is about £3 profit.. laughable I know but still, had a good time.. need to learn how to use this platform.
Does anyone have any ideas on how to use the Booktrader and Market Depth?
Thanks BD