IB Great at catching erroneous trades

[alanm]

Quote from Don87109:
Busting trades is an unconscionable practice and should be illegal. If you made a mistake trading you have no similar recourse.

You do, indeed, have similar recourse. If a stock closed at 20.00, and you accidentally bid 25.00 for it and get hit, call your broker immediately and ask them to ask the exchange to bust it.

IMO, busts are a necessary part of any electronic marketplace. The markets should publish hard guidelines (like CME) based on price and stick to them, though, instead of the sometimes arbitrary rulings that they make. My first trade this month, for example, I missed that VLO split 2:1, and paid up 4.3% from the split-adjusted close just after 07:00 ET. INET declined the bust request, even though they have repeatedly held to a 3% limit, assuming no other factors are in play. Overall, though, both INET and ARCA have been pretty good in the last year, with most of the dozen or so potential busts I've been a party to going the correct way.

 

[jficquette]

Quote from alanm:

Quote from jficquette:
IB could solve a lot of problems by requiring orders to be verified before going live.

The only reason I can see for IB to refuse to do this is because now they make commissions off of bad trades and if they eliminated those then they would lose money.

You've made this feature suggestion repeatedly, and it's always followed by a similar stupid allegation of wrongdoing. The allegation makes no sense, as the number of erroneous orders must be very small, and could hardly be expected to make any significant difference in IB's income. I expect the vast majority of trades come from professionals and order-entry systems that make very few (if any mistakes).

Nobody else in this thread (or elsewhere, to my recollection) wants this feature. I can even recall, during the evolution of another broker's platform, which had such a feature, strong sentiment that such a feature be taken out, or be made optional.

All that aside, you must be remarkably inexperienced to think that this approach will get you anything.

You still don't get it. However, perhaps you could give me the reason that you can not verify buys or sells as you can in MB Trader, Tradestation,Schwab, Cybertrader.

IB is the only one who doesn't have it as an option. So do you have any ideas why?

You have 2 choices, Incompentence or desire to generate extra fees. Take your pick.

John

John

 

[AllenCook]

Actually, it appears that you are the one that does not "get it". You should really take the time to read Alan's post.

There could be several more choices but I would suspect the most compelling choice is customer preference (traders who utilize IB and require speed in execution.) Your suggestion might be more suited for investors but the bulk of their customers are traders. As already described, there are several other checks that can be utilized.

Quote from jficquette:

You still don't get it. However, perhaps you could give me the reason that you can not verify buys or sells as you can in MB Trader, Tradestation,Schwab, Cybertrader.

IB is the only one who doesn't have it as an option. So do you have any ideas why?

You have 2 choices, Incompentence or desire to generate extra fees. Take your pick.

John

John

 

[NKNY]

Quote from jficquette:

You still don't get it. However, perhaps you could give me the reason that you can not verify buys or sells as you can in MB Trader, Tradestation,Schwab, Cybertrader.

IB is the only one who doesn't have it as an option. So do you have any ideas why?

You have 2 choices, Incompentence or desire to generate extra fees. Take your pick.

John

John

Hi,

I dont get it... the order doesn't actually go live until you click transmit. You can review the order before you send it, it doesn't just go live.

There were plenty of times where I clicked on the bid and TWS created a sell order when I really wanted a buy. The order was created but never actually "LIVE" . I could see that it was a sell order by the red SELL on the side of the order. I simply go in and change it to a blue BUY than I click transmit. And wala...the order is live.

So there is a verifacation process, the order just doesn't go live...

Nick

 

[stock777]

jficquette, two people have explained that the order is displayed before you transmit.

If you choose to ignore this, then we must assume some sort of ATD condition and refer to medical authorities.