IB's Buy Stops Don't Work on NYSE Stocks?

Quote from version77:

Here's the magical answer from IB:

Dear Trader,

At the time of the stop order in question, IB experienced a technical issue which resulted in market data problems. As a result of these market data problems, it appears that your account may have had a working stop order that did not trigger properly. We do apologize for any inconvenience resulting from this issue. Although uncommon, when utilizing a fully electronic system, such technical issues are, of course, possible. Please be aware that the source of the problem has been addressed by IB. If you have any further questions, please feel free to contact us again.

Regards,

Ben
IB Customer Service
More...
"Market data problems" means that simulated stops might not trigger. IB servers cannot determine when to trigger simulated stops without market data. This is why IB customers were forcefully requesting native stop limit orders for Globex.

Here is the result:

www.interactivebrokers.com/html/tradingInfo/usFuturesStopOrder.html
 
Quote from OldTrader:



Just a few comments:

1) Before you knew what had happened or whether there was a problem at all, you were posting here on the board hammering IB. Not the way a professional handles matters in my opinion. The first step is to contact IB, find out if you are filled. If there is a problem with the fill, you then discuss that with IB to find some type of resolution. Hammering the broker before you even know if there is a problem, or for that matter, before you have discussed it with them is a sign of immaturity.

2) What you received is a standard form letter. This letter by itself would not be acceptable to me. I would want to know more about what happened and why it happened, so that I could take some sort of steps to remedy the situation. But if this is really true, that it is a problem with "market data", then the implication is that the stop was held on the IB server, not on an exchange. And therefore you opened yourself up to an error when IB had a problem that happened to coincide with the triggering of your stop.

I would want my stop to be held on an exchange, not on IB's server...and therefore that's one element of what I would want to determine here. Frankly, if your stop was held by IB, and you had a means of having it held by the NYSE for example, you in the end have to take the responsibility for not knowing how to best enter your order to protect yourself.

Now, if your stop was actually held by an exchange, and IB claims the problem was "market data", that is bullshit. But I doubt that is the case. I might add that I am a supporter of IB, I trade with them, I think they are a great company. But when I start to see or hear the above letter more than a few times, I start to think IB is not remedying the problem, and that is it high time to remedy the problem.

OldTrader
More...
exactly correct
if you give your stop orders to ib they hold them until their computers say so. Only advantage it is not on specialist book and he can't set stop off. I usually send stop to the exchangeto avoid
ib computer data problems
 
Quote from version77:


Looks like only market orders are native on the NYSE. For limit
orders, IB does not say that they are native or simulated. Hmm...

Also, GTC orders are simulated and IB redoes these each
morning. But this wasn't the problem, because when I started
TWS up the stop was there, but just not execueted. Maybe when
I restarted TWS it placed the stop again on IB's servers because
IB had lost it overnight? Who knows. IB probably doesn't even
know and that is why they have never been able to get their
stops to work right... And probably never will... :(

I am usually sitting at this computer each day and the one time
I am not.... well.... so much for using IB's stops...
More...

How can limit orders be simulated? They aren't.

Saying that GTC orders are simulated is true only if you are talking about how they pull the orders at night and re-insert them into the market the next day. This is standard practice for most brokerages. When the orders are active, they aren't simulated.

Stop orders are simulated at IB. There are advantages and disadvantages to this. You should do some research to figure out the pros/cons for yourself so you can take responsibility for your own actions.
 
Quote from sprstpd:


Stop orders are simulated at IB. There are advantages and disadvantages to this. You should do some research to figure out the pros/cons for yourself so you can take responsibility for your own actions.
More...

sprstpd, does this stand for superstupid? You sound like you are
about as smart as Oldtrader. Maybe you are old too. IB blows a
sell stop and it is my responsibility? You have to be kidding right?

I am not responsible for their crappy software... They are. 100%.
 
Another thing, why does IB even have buy/sell stops if they don't
work half the time? Maybe they are on the other side of the order
perhaps? I can't believe traders go along with broker incompetence...

Warning to all IB Traders: Don't use buy/sell stops. They don't work...
 
Quote from sprstpd:



How can limit orders be simulated? They aren't.

Saying that GTC orders are simulated is true only if you are talking about how they pull the orders at night and re-insert them into the market the next day. This is standard practice for most brokerages. When the orders are active, they aren't simulated.
More...

Why does IB pull orders at night? None of the other brokers I
have used have ever done this... Name one that does... So I make
sure I don't move to them by mistake... There is something wrong
with IB's software... They need to fix it or they will lose customers...
 
Quote from version77:



Why does IB pull orders at night? None of the other brokers I
have used have ever done this... Name one that does... So I make
sure I don't move to them by mistake... There is something wrong
with IB's software... They need to fix it or they will lose customers...
More...

version, you yourself said you had 1 stop blown in two years. thus don't you think you're over-reacting?

Why does IB pull stops at night? Ever hear of illiquid after hours markets? Ever hear of small orders at wide prices in an effort to trigger stops in such markets? If you want stops at IB to work after hours, it is simple as going to the configuration setting and chosing "after hours".
 
Quote from def:



version, you yourself said you had 1 stop blown in two years. thus don't you think you're over-reacting?

Why does IB pull stops at night? Ever hear of illiquid after hours markets? Ever hear of small orders at wide prices in an effort to trigger stops in such markets? If you want stops at IB to work after hours, it is simple as going to the configuration setting and chosing "after hours".
More...

def, I could be overreacting, but when others say it is my fault
and I am responsible for a sell stop not triggering then I have no
choice but to voice my viewpoint.

Do stocks such as POT which is a NYSE stock trade afterhours?

This wasn't the problem. The problem was the stop didn't trigger
for over an hour after the price was hit. I can see pulling emini
stops or whatever but NYSE stocks?

I guess I should just stop reading the thread so I won't see
others griping at me for griping about IB... :(
 
Quote from version77:



sprstpd, does this stand for superstupid? You sound like you are
about as smart as Oldtrader. Maybe you are old too. IB blows a
sell stop and it is my responsibility? You have to be kidding right?

I am not responsible for their crappy software... They are. 100%.
More...

Being compared to OldTrader seems like a compliment to me given the content of his posts.

No, the blown stop is not your responsibility. However, as a trader, it is your responsibility to know your execution platform. One of the features of IB is its simulated stops. It is your responsibility to know they are simulated and that if IB has stale market data due to electronic error, there is no way for them to send your stop order correctly. Every brokerage will have difficult days in terms of electronic communication. The internet will have days where it will break down. The real question is if you, as a trader, are prepared for these events and how you will handle the situation.

Were you watching POT during this episode? Was there a time where you noticed your stop wasn't working? If so, did you immediately cancel it and send in a market order?

How about having a backup alert system - most quote providers have some sort of alert program that will beep if a stock hits a certain price. Make sure the data feed is not IB for redundancy purposes. When you hear the beep you can check to see if your IB stop order is active or not. If it isn't, then you can submit the order manually. I realize you shouldn't have to do this, but the realities of electronic trading are that you can be cutoff from your electronic brokerage at any time. You have to be prepared.

The solution you are seeking is within you. The solution is not bitching at IB for electronic failure.
 
You must log in or register to reply here.
Back
Top