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Shay Horowitz wrote:
>
> Futures real traders,
>
> I've been trading stocks for a few years but only recently started trading
> futures. I have some general questions since I'm not familiar with the
> procedures. It seems that I always get executed exactly at the high price
> and get stopped out at the bottom. mainly on market orders, I would always
> get executed at a point above the price where I put in the market orders.
> Do not get me wrong I am profitable but I think I could do so much better
> if I had decent executions. I do not get my fill reports till ten or
> fifteen minutes later, therefore I never know if I go screwed or not.
>
> This question is mainly for ex-floor traders. What prevents a brokerage
> firm from keeping the difference between your execution price and what they
> actually report back ?
I am an ex-CBOT trader and my initial reaction to this is to answer that
there is enough of a paper trail that they simply cannot do this.
Especially at the brokerage firm level. They would have to create
fictitious trades to take in their account and give to you and this just
really can't happen. For example, if they get the order from the pit
that you bought 1 bond at 115-00. For the Brokerage firm to steal 1
tick from you they would have to report 115-01 to you , but then they
would have to make up a ticket having them buy the 1 at 115-00 and
selling to you at 115-01. Then they would have to submit the trade.
There are many systems set up at the exchanges to watch for things like
this and it really can't be done. This is at the floor level, some IB's
in the past have been known to do some baaddd things. If you are with
an unknown IB, check them out with the NFA.
That said, since I have moved upstairs I have seen some amazing fills
come out of NY pits. Things have been done to me there that I could
never imagine happening in Chicago. And my brokerage firm just laughs
and says "it's NY, they do whatever they want down there". There is the
possibility that you are being ripped off by the pit broker and you
won't know about it. In fast markets they have a tendency to just say
"fill all the stops at the low" then they may come back and adjust
later. All you can do is scream at your broker if you think you deserve
a better fill and make them call the floor. The customers that scream
the loudest OFTEN get the best prices.
>
> Commissions and the slippage are holding me back. Any suggestions ? Any
> brokerage firms I should take a look at that give decent fills ?
Remember if you are trading good volume, you can negotiate commissions.
And just don't be afraid to demand time and sales and complain.
Good Luck,
Eric
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