Trading Eminis with IB

[clylbw]

Hi,

I am finally about to trade Eminis with IB, and would like to clarify several points before I start:

1. Apparently the normal market hours for Eminis is 9:30am to 16:15pm EST. With IB, can I trade before 9:30am? I have also heard that trading Eminis is not permitted between 15:45 to 16:15pm for some accounts. Is it true? What should I do if I wish to trade between 15:45 and 16:15pm EST?

2. Suppose I have sent a market order through TWS. The order is filled and becomes a trade without a stop. Later, can I add a stop to this trade? If so, how may I do so via TWS?

3. Suppose I have a long position at the moment. What is the fastest way for me to change my position into a short one, with the same size?

Many thanks in advance.

 

[JonnyT]

1) Yes you can trade ES before 09:30. At 15:45 the margin requirement is greater. If your account doesn't have enough $ IB will terminate any open trades for yoor protection.

2) Yes you can add a stop. Simply place a stop order through TWS. i.e. change type to STP rather than MKT and put in the stop price. I strongly suggest you read the TWS manual...

3) Say you are long 1 contract simply sell 2 contracts. That leaves you 1 short.

JonnyT

 

[frugi]

1. Yes. You can trade from Sunday 18:00 - Friday 17:00 EST but Globex is closed daily for CME/IB daily maintenance from 16:15-16:30, 17:30-18:00, and 23:45-00:15 EST

I have not heard of the 15:45-16:15 rule, although margin requirements increase, double I think, after 15:45 when requirements change from intraday to overnight. This can mean some small retail traders have to exit positions before 15:45 due to lack of margin.

2. Yes, easily. If you have, say, a long open then click on the bid price and change order type from MKT or LMT to STP or STP LMT. Then enter the stop price and hit transmit. You can set the default order type, i.e limit, market, stop etc. by clicking on Configure>>Order>>Order Defaults from the toolbar at the top of the screen. The default order type is the order that appears when you click the bid or ask price for any instrument.

If you want you can set a limit along with your stop and make them part of an OCA (one cancels all) group which can be handy if you need to go out with a trade open. Whichever is hit first will cancel the other(s).

3. Click on the bid price, change the number of contracts to double your open position and leave the order where it is, ensuring it is a market order. You would probably want your default order type to be market MKT in this case. Then all you'd have to do to reverse would be hit transmit.

Technically limit orders will be filled a tiny bit quicker than a market order as TWS converts market orders to limits which Globex recognises. So for a reversal sell order you could change it to a limit and ensure the limit price is well below the market price, that way it is guaranteed to be filled.

Someone may know a quicker way of reversing a position.

Thanks for the card! HTH.

Ahh I've been beaten to it by JT anyway As he says it is a good idea to read the manual and check the different order types on the IB website. TWS is quite powerful and if u need it to be and can be a little confusing for the first few days.

 

[clylbw]

Thanks to both of you indeed. Glad you like the card Frugi.

One more thing if I may. Is there an up tick requirement in Eminis? For example, if I want to short NQ or ES, do I have to wait for an up tick before I can short it, as it is the case with the stocks? Or can I short it without the up tick?

Thanks really.

 

[Quercus]

You can do what you like when you like, and TWS will do what you tell it to do in the blink of an eye!
Like those before me I recommend that you become very comfortable with TWS before entering the market for real, unless of course you want to learn from example like myself.
In the early stages I had some nightmare scenarios with the platform, which were entirely my fault. Eg. - doubling up on losing positions while attempting to place a stop, or closing a good trade when attempting to move a stop, etc.etc....
You'll soon pick it up I'm sure, and the new DoM thingy may have made it easier to use. The other alternative is to use a front-end API, of which there are many. I use NinjaTrader myself which costs $30 per month, and has great functionality including a market-weighted simulation platform. I'm in no way associated with this programme but can't praise it enough, and after all it's only 0.75 ES pts a month, and I cost myself WAY more than that every thirty days!
Cheers
Q

 

[JonnyT]

One more thing if I may. Is there an up tick requirement in Eminis? For example, if I want to short NQ or ES, do I have to wait for an up tick before I can short it, as it is the case with the stocks? Or can I short it without the up tick?

The uptick rule only applies to Stocks. You can do whatever you want with futures.

Remember to RTFM

JonnyT

 

[osho67]

Thanks to everybody as I have learnt few things. Understanding TWS manual is very difficult-not very user friendly.

Can I somehow practice on IB realtime during weekdays with live realtime feeds. (not on TSIM+)

Thanks

 

[clylbw]

Many thanks indeed.

 

[sidinuk]

osho67, the TWS demo will give you some practice at using the platform with 15 min delayed data. Go to the IB website / Systems/Demo to logon.

 

[oatman]

At first glance the platform is terrifying but once you take out what you don't need it starts to get friendlier. All new platforms are a nightmare for a few days (Or daymare? )

 

[donaldduke]

By default IB simulated Globex stop orders only execute during normal trading hours.
You might want to change this default in TWS if you plan to trade out of hours.

 

[clylbw]

Thanks indeed.

I am afraid there is a new problem. This evening, I tried to make my first trade in NQ. In the Symbol cell I typed in NQ, and entered the information about quantity and order type. When I clicked on Buy, an error message came up which said 'the security NQ is not available or allowed in this account.'

I have checked with IB that my account is approved to trade US Futures products; with an account net balance of 3,000 GBP I believe I have enough margin for one NQ contract, which was the size I wanted to trade. So what is the problem?

 

[schoe]

Thanks indeed.

I am afraid there is a new problem. This evening, I tried to make my first trade in NQ. In the Symbol cell I typed in NQ, and entered the information about quantity and order type. When I clicked on Buy, an error message came up which said 'the security NQ is not available or allowed in this account.'

I have checked with IB that my account is approved to trade US Futures products; with an account net balance of 3,000 GBP I believe I have enough margin for one NQ contract, which was the size I wanted to trade. So what is the problem?

You have the right symbol, click in 'Add Ticker ' at the top then you should get up a box that says, stock/future etc. click future then September, Globex and then add and it should show in the data line. I just did it so I know it works. Have you subscribed to the correct data?

 

[clylbw]

Thanks indeed, schoe. Will have a go.

Another thing that puzzles me is, it always asks me to choose between NQ of CME and NQ of Globex, both with maturity in September . Are the two not the same thing?

I suppose I have the data as I have subscribed to the Non Professional US commodities and securities exchange bundle via the Account Management screen. Is it enough?

Thanks indeed.

 

[Quercus]

It's the same instrument which is traded on different markets. Globex is the fully electronic option. Some will have different liquidity and volatility.

 

[frugi]

Clylbw,

I think Schoe and Quercus have covered it but instead of typing NQ into the symbol cell at the top of the screen you may find it more convenient to type it into the main screen under the Underlying column (far left of screen) in any row you like. Type NQ, press the RETURN key and enter the other details. You'll want the Globex option. You can then add other symbols if you want to keep an eye on the change of the Comp, Dow etc.

To make a trade simply click on the bid or offer price and then select the type of order etc.

You can alter the layout of columns, colours etc. by clicking Page then Layout at the top. Configure is also useful for setting default order type, stop treatment etc.

Hold the right mouse button down above any symbol for more options.

 

[Trader333]

Lynn,

When presented with the choice go for Globex otherwise you will need to pay $60 a month exchange fees (from Memory for CME). Also I presume you have subscribed to the Globex exchange with IB ? if not the you will need to.

And as said above what you are trading is the Future not the index which may have been why you got that message.


Paul

 

[clylbw]

Many thanks to all of you so much.

Maybe this thread should be called 'Newbie IB help', because I believe many other new IB customers are likely to encounter similar problems. Why do they not include some explanations of this kind in the user guide? I went through it, which sadly helped little.

Or perhaps I am just being extraordinarily slow. :cheesy:

 

[Trader333]

Lynn,

It isnt you, IB are not good at making things obvious which is why we are here to help you


Paul

 

[Quercus]

Here are a few short cuts which you may want to use:
1. If you left click in the far left column (underlying), you can type in a symbol eg ES or YM.
2.move to the next column on the right and left click again, select type of instrument. (for futures all the contracts can be selected by month/year using the drop down menus)
3. Once the instrument is set up, by right clicking on the symbol in the far left column, various options arise.
4. If you want a very quick way to buy/sell the market then by choosing one of these options after right clicking, is one of the quickest ways IMHO
5. This order selection will appear in the TWS window but will not be placed until you press "transmit".
6. Be very aware that if you choose this order execution route that your trade will be "naked" and a stop will need to be placed immediately afterwards. (some people may not think this is a sensible approach, but it is quick!)
Hope this helps too!
Q