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IB - Futures price capping, denied ability to trade
- Thread starter atrocious
- Start date
it just cost me a few grand - on the CHF futures. tried to sell on the reopening of Globex at 1.1750 (my limit order) and they wouldn't let me enter the order (opened at 1.1775 ish) - CHF CASH was lower. I still sold some as I got a few fills at 6:00:01 (EST) as my order goes in once it opens (no cap). Made 70+ points but should have made more
also - yesterday I entered an order on an equity option for the open - $1.00 bid 70 lots. They capped my order at .70 where it opened and I got none and then IB displayed my real bid one second later ($1.00 bid) and no fill for me. Another few thousand lost because they capped my order
I've gone to upper management and got no results. Was told that I should talk with tp. I'm afraid to take it that high. What kills me is that no one at IB has figured out how negative this is on their top end traders......
also - yesterday I entered an order on an equity option for the open - $1.00 bid 70 lots. They capped my order at .70 where it opened and I got none and then IB displayed my real bid one second later ($1.00 bid) and no fill for me. Another few thousand lost because they capped my order
I've gone to upper management and got no results. Was told that I should talk with tp. I'm afraid to take it that high. What kills me is that no one at IB has figured out how negative this is on their top end traders......
I've gone to upper management and got no results. Was told that I should talk with tp. I'm afraid to take it that high. What kills me is that no one at IB has figured out how negative this is on their top end traders......
I trade equities and I've been dinged multiple times by the capping algorithm. And what's really funny is they always tell me that I just need to call in to widen the caps, like that is the solution to the problem. That's all great if seconds don't matter, but they always do and calling in is not an option in a fast market. I don't understand who thought this capping algorithm up - obviously not a trader. Really frustrating dealing with this crap.
I've gone to upper management and got no results. Was told that I should talk with tp. I'm afraid to take it that high. What kills me is that no one at IB has figured out how negative this is on their top end traders......
It seems to fall on deaf ears, I have not heard a single legitimate defense from IB other than the vague "regulators make us do it" which is bullshit, otherwise every other futures broker would be out of compliance with the NFA and CFTC. I've read the exchange regulations - they make clear you have to consider a customer's experience level and *market conditions*, not impose an arbitrary 2% cap which can't be overridden in cases of legitimate market moving news.
Sadly I think you have to demand your fills (price adjustments) and take it to arbitration if necessary. A broker has no authority to modify your held limit orders, it's tantamount to displaying your order at a price which will never fill and let the world run ahead of you.
I'll state again, this will happen in a more mainstream contract one day i.e. ES, and someone is going to be on the hook for a lot of money in a runaway market. I'm all ears if someone at IB has anything logical to say.
yes. that sums it up.
I honestly believe that if you went to the appropriate regulator and showed them what IB was doing then they would be in some trouble. It isn't enough that you demand your fill as the price discovery model of the markets is altered when orders are changed. As in the case of the guy who sold his options too low (.70 instead of $1.00 because my order was capped). Who compensates him? Nobody. The market becomes inefficient.
The point is if you're going to screw around with my order by changing the price then you better be damn sure (100% or as close as one can come) that you're protecting me. IB's method as to how they cap doesn't make any sense and the people I have spoken with must understand this.
As to your point - the day will come when this kind of activity hits the ES and IB is going to be in a world of pain if they don't get this fixed.
I'm hopeful that someone who truly understands the marketplace and trading will fix this issue.
BTW - why not allow certain traders to bypass the capping? or better yet why not hold the Exchanges responsible for regulating this stuff (tradable prices). Otherwise you get two tiered results where some brokers have caps and other don't. You guys should ask IB if Timberhill has the same caps when trading?? Me thinks not!
I honestly believe that if you went to the appropriate regulator and showed them what IB was doing then they would be in some trouble. It isn't enough that you demand your fill as the price discovery model of the markets is altered when orders are changed. As in the case of the guy who sold his options too low (.70 instead of $1.00 because my order was capped). Who compensates him? Nobody. The market becomes inefficient.
The point is if you're going to screw around with my order by changing the price then you better be damn sure (100% or as close as one can come) that you're protecting me. IB's method as to how they cap doesn't make any sense and the people I have spoken with must understand this.
As to your point - the day will come when this kind of activity hits the ES and IB is going to be in a world of pain if they don't get this fixed.
I'm hopeful that someone who truly understands the marketplace and trading will fix this issue.
BTW - why not allow certain traders to bypass the capping? or better yet why not hold the Exchanges responsible for regulating this stuff (tradable prices). Otherwise you get two tiered results where some brokers have caps and other don't. You guys should ask IB if Timberhill has the same caps when trading?? Me thinks not!