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When I called them months ago about the "rumor" at the time that they were
now sending stop limit order directly to Globex. I was
told that was for the evening sessions only. Things may have changed, I
don't know. But thats what they told me.
----- Original Message -----
From: "David Langford" <david@xxxxxxxxxxxx>
To: "AndrewN" <tradera@xxxxxxxxxx>; "Omega List" <omega-list@xxxxxxxxxx>
Sent: Wednesday, February 12, 2003 8:39 AM
Subject: Re: IB TWS problem with stops
> I have to agree with Andrew. After 6 mos of 6 to 20 round trips per day,
I
> can only recall One time where I had negative slippage on a stop loss. I
> did have a few where I had positive slippage of 1 tick. And they do send
> stop limits directly to Globex.
>
> David
>
> ----- Original Message -----
> From: "AndrewN" <tradera@xxxxxxxxxx>
> To: "Omega List" <omega-list@xxxxxxxxxx>
> Sent: Tuesday, February 11, 2003 9:01 AM
> Subject: RE: IB TWS problem with stops
>
>
> > IB has a great trading platform for very many reasons that I won't go
into
> > now. As far as queuing of stops is concerned, I can't remember the last
> time
> > I had any slippage on a stop. As for any concerns about stops not being
> > elected by IB, just place a stop limit order. These ARE sent to Globex.
> > Problem solved.
> >
> > Andrew
> >
> >
> > -----Original Message-----
> > From: Simon Campbell [mailto:simtrader@xxxxxxxxxx]
> > Sent: Tuesday, February 11, 2003 7:18 AM
> > To: Omega List
> > Subject: Re: IB TWS problem with stops
> >
> >
> > Why any futures trader uses IB is beyond me given the way they handle
> > stop orders. Unless they've finally made the long-awaited change of
> > sending stops native to Globex (judging by the comments it seems not)
> > then in my opinion, it's a mess because your stop is only held on IB
> > servers which means:
> >
> > - your order will only get sent to Globex as a market order when the
> > stop price is triggered. In the best of cirucmstances (when it works)
> > this means that your fill takes the lowest priority. All stops at
> > the same price held directly on Globex will be filled before your
> > order is. Orders held native on globex are timestamped and queued.
> > Even if you sent your IB stop order four hours earlier, Globex
> > doesn't even know about it until after the price is hit ...because
> > only then does IB actually send it off. Bottom line? time lag in
> > getting the order off (even if <1 second) and bottom of the pile
> > priority, all mean increased risk of a tick slippage. At $12.50 ES,
> > what good is your extra $1 commission saving?
> >
> > - Your stop relies on IBs own datafeed to trigger it and send it to
> > Globex. A problem with their datafeed means your order can go
> > unexecuted. My understanding is that it's not a true streaming
> > datafeed but rather a snapshot every second or so. What if the
> > snapshot misses your stop price? Or what if the feed goes down for
> > 10 seconds around the time your stop would be triggered? Your stop
> > goes unfilled that's what!
> >
> > Contrast this to the situation where your stop is held directly on
> > Globex. It's been timestamped and received by the entity actually
> > doing the execution. It will receive preferred filling. Your PC
> > could blow up, your brokers servers could explode ...and nonetheless
> > you are guaranteed to get executed. The worst that happens is that
> > your brokers order software goes iffy (it happens to them all) and it
> > says your order is still working. But if you KNOW your order was
> > sent to Globex you have total peace of mind that the truth is you
> > were executed and they just aren't showing it yet. You can relax that
> > any software glitch has no material impact on you. Contrast that to
> > IB where you are sitting there with a "working" order and wondering:
> > "was I filled?", "is the system just slow?", "am I still in the
> > market?". Who needs that hassle in their life?
> >
> > To me, it's such a basic fundamental to have your stop orders only
> > rest on Globex servers ...trading with them on a brokers' servers or
> > keeping them on your PC is just insanity. Pay an extra buck or two
> > and use a J-Trader platform* that holds stops directly on Globex.
> > IMHO the commission savings of IB just aren't worth the extra risk of
> > $12.50 slippage, the extra risk of unexecuted orders, and the mental
> > stress it puts on your ability to successfully trade, when problems
> > do occur. There's enough stress in trading without worrying whether
> > your orders are filled or not.
> >
> > S.
> > *Not all versions of J-Trader can send stops directly to Globex (some
> > versions only hold them on your PC), but stand alone version
> > 2.8.0.6.D does offer this capability.
> >
>
>
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