IB new forex spreads
- Thread starter oktiri
- Start date
During the reset you can place an order via the telephone. We are working on the reset issue, and while we will not be able to abandon it completely we are programming for a much shortened reset time (sub-5 minutes).
IDEAL-Pro is currently closed between 1700-1800 EST shutdown. As we add more market-markers I would expect this close period to disappear.
P&L issue is not a legacy issue. It's just the way the TWS is designed. There has been discussion about this but nothing has been agreed upon. One of the predicaments is how to do it:
For example, lets say you go long Eur vs GBP.
Then your next trade is long GBP vs AUD.
One of the advantages with IB from a cost/practicality/interest point of view is that you don't have to settle the same currency pair in order to close a position. Thus, in the above case the GBP may largely net off, leaving you with a long EUR balance, short AUD balance and a marginal GBP balance. Your next trade could then be to sell EURvsAUD.
Thus, it's difficult to give a P&L.
Compare this to a standard retail FX model in the above case you would need to sell Eur/Gbp and sell Aud/GBP in order to close your positions - each position would have its own P&L.
My information is directly from other IB associates --- so to clarify
Daily Blackout Period(s)
If you can call in orders during the reset (I am assuming this is the TWS reset/shutdown time), can you have stops and limits placed during those times/call them in, etc?
Regarding the closure due to the liquidity provider agreement, whether indirectly or directly, right now with just an IB account, an IB customer is providing a riskless call option to IB's liquidity providers on the customer's entire account +++ more. The IDEAL Pro liquidity providers are absolutely and fully aware of this ... I think that the current liquidity providers s/ ammend their arrangement as 6 days/week, 24HR is the standard .
And correct me if I am wrong, but I believe that the interbank does not close, period...
Basic Position Management - P&L
I cited a legacy issue because that is how one IB rep phrased it when I spoke with them re this.
One basic improvement is for P&L would be to calculate a "theoretical P&L " as the difference between each separate currency balance and the midpoint of the bid and the offer. The total net P&L would be close to the real/true position P&L. This is a start...
I do not have direct experience, but I am almost certain that the large FX trading desks look at their positions from both points of view:
1. Synthetic positions that are made up of various isolated currency pairs
2. Net positions - looking at net/net how much of each currency that you are long/short.
Looking at 2. only would be quite confusing when many times only certain pairs are moving, etc.
**** Thank you Steve_IB and all other IB associates! My experience communicating with the firm has been positive with a high level of responsiveness. You are well on your way to building a highly attractive spot FX trading offering ****
Daily Blackout Period(s)
If you can call in orders during the reset (I am assuming this is the TWS reset/shutdown time), can you have stops and limits placed during those times/call them in, etc?
Regarding the closure due to the liquidity provider agreement, whether indirectly or directly, right now with just an IB account, an IB customer is providing a riskless call option to IB's liquidity providers on the customer's entire account +++ more. The IDEAL Pro liquidity providers are absolutely and fully aware of this ... I think that the current liquidity providers s/ ammend their arrangement as 6 days/week, 24HR is the standard .
And correct me if I am wrong, but I believe that the interbank does not close, period...
Basic Position Management - P&L
I cited a legacy issue because that is how one IB rep phrased it when I spoke with them re this.
One basic improvement is for P&L would be to calculate a "theoretical P&L " as the difference between each separate currency balance and the midpoint of the bid and the offer. The total net P&L would be close to the real/true position P&L. This is a start...
I do not have direct experience, but I am almost certain that the large FX trading desks look at their positions from both points of view:
1. Synthetic positions that are made up of various isolated currency pairs
2. Net positions - looking at net/net how much of each currency that you are long/short.
Looking at 2. only would be quite confusing when many times only certain pairs are moving, etc.
**** Thank you Steve_IB and all other IB associates! My experience communicating with the firm has been positive with a high level of responsiveness. You are well on your way to building a highly attractive spot FX trading offering ****
Hi Steve,
Thanks for all the work you do at IB. I know I'm not the only IB customer that appreciates it. You might want to take a look at how OANDA shows this to their customers. They show net exposure like you are talking about as well as P&L on a per trade basis. It is very simple to follow and easy to see at a glance where you stand without needing to pull out the calculator....
Kind regards,
MK
Steve can you do something about bad ticks in all products (except IDEALPRO!) form shut down and again at restart. Also I frequently find that TS2000 fed via IB loses the connection during shutdown/restart - a recent problem - These problems seem to have come about with the change in shutdown times as US changed times.
Agree with others that P&L is reqired.
On the FX offering overall, as others have said it is shaping up to be the best option for retail traders. Keep on with it
Agree with others that P&L is reqired.
On the FX offering overall, as others have said it is shaping up to be the best option for retail traders. Keep on with it
No, you can only call in marketable orders during the reset.
Just because FX is 24 hours, doesn't mean that every bank makes markets 24 hours per day. Theres no conspiracy theory here nor riskless call option - an IB client could as easily hedge a position with another broker or with the FX futures as could the bank.
Also bear in mind these banks are some of the major players in the interbank FX market, I don't think that they have IB customer account balances in their sights!
If you really believe there is a riskless call option, then there's also nothing to stop you from making a market in these products and then having other IB customers trading against you so you would get the this riskless call option.
Fyi.. we will be adding another major bank market maker very soon
Who are they? :-D :-D
I'll look into the whole P&L tracking think. Can't promise anything yet though.
If you are sending a limit order, you can add a bracket order which consists of a stop (loss) and a limit (profit target) order which will only be sent when the limit order is filled.
If you place a market order and are executed, you can then set-up a stop order and a limit order and link them via the OCA function.