|
PureBytes Links
Trading Reference Links
|
Hi Markus,
although this is not an IB thread, I 'll try to answer your questions
to my best knowledge :
IB's stop-order handling is somewhat different from other brokers and
also different for the various exchanges.
You also have to make a distinction between stop and stop-limit
orders.
A stop order becomes a market order, once the stop-price is hit or a
quotation is below your stop price ( could be quite dangerous ).
A stop-limit order is only activated, when the activation price is
hit - furthermore, it's only executed when the specified limit price
occurs on bid / ask. That's quite a difference compared to stop order.
Please keep also in mind, that some exchanges do not natively support
the use of stop or stop-limit orders. In that case, IB's
system "simulates" the stop order for you.
NYSE i.e. does not accept native stop orders - so IB simulates this
by holding your order back until the stop-price is hit.
NASDAQ and all ECN's don't support stop orders natively. IB's system
works around by creating simulated orders, where your stop activation
price has to be hit 2 times before it becomes active. If a price runs
through your stop with only one or even no quotation at your limit,
the order will not be activated, hence not executed !
For more details see IB's explanation below :
http://www.interactivebrokers.com/html/tws/stop_orders.html
Your IB stop or stop-limit order is not displayed to the market
before the activation price is hit ( in case of a simple stop order,
activation price is your stop or below / above depending on your
ordertype.
In case you use stop-limit orders, be aware, that execution will only
be carried out, when the limit price appears on bid / ask ( depending
on your ordertype buy / sell ).
You have to be also fully aware of the fact, that your stop order is
not necessarily displayed at the first rank of open orders.
If other traders use the same bid / ask earlier and the price moves
away from your limit price before your order had a chance to get
filled, it will probably take a while until it gets filled, even if
you see "your" price displayed several times on the realtime quote-
screen. It all depends on at which position your orders stays in the
line. It will, however, stay active until all orders above yours are
filled ( provided, the bid ask hits your limit price ).
Systems freeze : This happens apparently from time to time ( same as
with many other brokers I tried ) but it's a fairly rare event with
IB.
Sometimes, it has nothing to do with IB, but with your ISP - some
ISP's shut down the connection after a period of inactivity - some do
not consider quote-transmission as an activity !
This behaviour can frequently be found among many low-cost ISP's and
those who rely heavily on the use of proxies. Please make sure, your
ISP works without proxies.
Make also sure, your PC has sufficient memory - I consider at least
256 MB as sufficient.
Sometimes, system outages are based on problems with quote-supply
from exchanges - IB can't do anything about it.
Pending orders when system freezes or PC shut down:
Once your GTC order has been transmitted and accepted ( see colour
code ) it will stay live, even when you close the TWS application,
shut down your PC and you go on holidays. If a system freeze occurs
exactly at the moment of order transfer, I'd logon again to make
sure, that the order has been transferred and accepted by IB's
system. You should find it on the "pending" page as well as on the
quote page where you entered the order. Again, refer to the colour
code to check the status of your pending order.
The ipact of system freezes depend very much on what really happend.
If the freeze is only at the outgoing site of IB, your TWS will loose
connection to IB's servers, but internal IB systems will still
operate as ususal ( including any pending order executions ).
IB can only be aware of that problem, when a customer sends a
complaint.
If it's an intenal problem on IB's system, including incoming
exchange data, no executions may have taken place on pending orders.
Hope this helped a bit.
regards
--- In amibroker@xxxx, "IVA GmbH" <funnybiz@xxxx> wrote:
> Dear Stephan,
>
> thanks very much for your stepping in here.
>
> Question back: what do you mean by "stops have to be hit twice to
get
> activated"? īDonīt they get activated once the price target
has
been hit no
> matter what???
>
> Have you ever encountered that pending orders have been purged due
to a
> system failure?
>
> What about a systems freeze? A friend of mine told me that happens
once and
> a while and you donīt always find out instantly since they
somehow
are first
> notified by their customers?
>
> One last thing: do I have to watch my GTC orders to make sure they
will be
> executed properly or can I rely on TWS? What about a systems
freeze/system
> down? Will my pending orders still be in place afterwards?
>
> If all this leads too far in a AB dedicated forum, Iīd welcome
your
reply on
> a private basis as well at funnybiz@xxxx
>
> Thanks very much in the meantime and good trading to you!
>
> Markus
> ----- Original Message -----
> From: <tradeshark@xxxx>
> To: <amibroker@xxxx>
> Sent: Tuesday, October 23, 2001 7:34 AM
> Subject: [amibroker] Re: Interactive Brokers Reply
>
>
> Hi,
>
> also have several accounts with IB since 03/00 - very happy with
them.
>
> Hal wrote :"They are great, except you get NO interest of any kind
on
> your money,..."
> This is not true - IB pays interest for cash in your account >
10.000
> USD.
> Their margin lending rates are amongst the lowest in the industry.
>
> Stop orders : I use stops ( day + GTC ) regularly and have yet to
> find an occassion, where they didn't work. It is necessary, to have
> the activation price set a few cent away from your desired stop.
>
> Stops setup with IB's TWS are not displayed to the market until the
> activation price has been hit 2 times - after that, your stop
becomes
> active and is executed as soon as your stop-limit price has been
> afterwards.
>
> TWS 4.0: You need to have the Java Interface installed in order to
> run TWS properly ! More info see their website.
>
> One more hint : TWS doesn't work if you're behind a firewall,
because
> it needs to establish a dedicated connection. You need to ask your
> sysadmin to change FW settings in order to allow this connection
> established through the firewall.
>
> regards
> Stefan
>
> --- In amibroker@xxxx, "IVA GmbH" <funnybiz@xxxx> wrote:
> > Johan,
> >
> > I read your post regarding IB and would like to use your expertise
> as well.
> >
> > Just last week, I opened an account with them but was neber able
to
> get TWAS 4.0 up and running.
> >
> > The always send me back and forth from cust. service to tech
> support and vice versa.
> >
> > What did you mean exactly by your mentioning of stop orders.
Donīt
> they work them properly, especially when theyīre set as GTC???
> >
> > Thanks for your input
> >
> > Markus
> > (Germany)
> > ----- Original Message -----
> > From: Hal Brehe
> > To: amibroker@xxxx
> > Sent: Thursday, August 16, 2001 2:13 AM
> > Subject: Re: [amibroker] Interactive Brokers Reply
> >
> >
> > Hi Johan,
> >
> > I have three accounts with IB. They are great, except you get NO
> interest of any kind on your money, therefore if you don't intend to
> invest the majority of your funds, maybe there might be some other
> brokerage paying interest you might consider.
> >
> > If you need psychological or any YES man working for you, then
> it's No Good, as you are warned before you open account that you
> should know all about how to place the orders that you want, because
> it is YOU who, in effect, place your orders and then send them on to
> the market makers.
> >
> > At 1 cent per share on stocks for the first 500 shares, then 0.5
> cents/share for quantities above 500. Futures contracts are very low
> also - I believe around $1.50 -- but you can read all of that stuff
> at their site.
> >
> > If you want to "be on your own", then this is the place. If you
> learn to use the "Hot Keys" for the various functions, then I
> understand that the market action is almost instantaneous and
> suitable for "day trading".
> >
> > Their "HELP" works best with e-mails, and at times is a bit slow
> in responding, to counter that there is 24 hour help. You might be
> talking to Hong Kong, after our markets closed (I did!), but
> somewhere in the world there is an IB brokerage that will try to
> answer your questions. You can tell that they are NOT over staffed,
> but I believe its adequate. I had trouble with Stop orders, then I
> found out that stops are a two price operation. The trigger price
> then the Active price. So should you use stops, then be warned,
study
> them closely before you use them.
> >
> > If you have other questions, give me a shout. As for me, IB is
> GREAT!
> >
> > Regards,
> >
> > Hal
> >
> > At 11:40 PM 8/15/01 +0000, you wrote:
> >
> > Hello,
> >
> > I'm looking for a broker in the U.S.
> >
> > Has anyone experience with "Interactive Brokers"?
> >
> > Any advice or suggestion is welcome.
> >
> > Best regards,
> >
> > Johan
> >
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
> http://docs.yahoo.com/info/terms/
> >
> >
> > Yahoo! Groups Sponsor
> >
> >
> >
> > Your use of Yahoo! Groups is subject to the Yahoo! Terms of
> Service.
>
>
>
>
>
> Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
|