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Simon is correct. However it should be noted that IB does *not* hold stops
in its internal que for the 30 year US bond and 10 year US note markets.
These are held in the CBOT que. The difference is in the trading engines.
The Eurex platform allows stops while Globex2 only allows stops w/limits.
I've never tried it but it would be interesting to check and see if a Globex
order entered into the IB TWS as a stop w/limit is still held in que or if
it is transmitted.
I've also used (still do for open outcry markets) Rolf and Nolan's system.
It is quite different from the IB system in that you have to enter actual
orders rather than just clicking on existing contracts. Its reliable,
generally, though R&N operates as a service bureau and their downtime has
been a frustration in the past.
Sean
> Just to provide a full perspective on Interactive Brokers:
>
> IMHO the way they handle stop orders is inferior to other systems
> like PFG
> Best Direct. IB places your stop order as "waiting" which means that it
> only actually gets transmitted when the price is touched. This process
> adds X seconds delay to execution and results in greater
> uncertainty on the
> fill. Your stop order is not timestamped or queued in order of priority
> when it was sent ...because it isn't even "sent" until the price is
> hit. By contrast, PFG places your stop order physically on Globex in
> advance. It's been timestamped and prioritised accordingly.
> Your fill is
> instantaneous when the price is hit.
>
> In the Emini NQ this difference is most marked. If the market "runs"
> through your stop price, with PFG you will get a fill at (or with very
> little slippage at ) your price. While IB is still "sending" your order,
> your fill could easily be several ticks away by the time it comes
> back. It
> does you no good to save a few $$'s on commissions if you are paying
> $20-$40 slippage on a stop order. Of course, there are times when the
> delay in sending your stop order could result in a better price.
> But in my
> opinion, this level of added uncertainty is NOT GOOD. In looking at the
> statistics below I would ask the question: how many times were
> Dave's stop
> orders hit with an extra $10-$50 slippage that wouldn't have occurred if
> he'd used a different system? When analysing cost, there is more to
> consider than just the commission rate.
>
> I'm not saying that PFG is perfect ...but one must be aware of what the
> differences are between different systems before making an
> informed decision.
>
> Simon.
>
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