Interactive broker question

[gwac]

How do you leave stop loss entry orders.
I read somewhere last week here that there is
special way to do it....

Thanks

 

[Kevin Schmit]

Quote from gwac:

How do you leave stop loss entry orders.
I read somewhere last week here that there is
special way to do it....

Thanks

You don't, not if you can help it, not on Forex trades
at Interactive Brokers. IB's Forex stops do not work,
there is always a few pips slippage. You never are
filled at your price. IB does Forex stops on a computed
price, (bid+ask)/2. A little thought will tell you why this
is a particularly stupid way to handle stops in a quasi-
ECN environment.

 

[granville]

Kevin,
I think you mentioned in another post that market makers at IB's IdealPro do not have to honor their bid/asks..

is this really so? What are the technicals of this? How long do they have to withdraw a bid after an order has been placed against it?

I understand that EBS's platform requires all bid and asks to remain active for at least 2 or 3 seconds for the explicit purpose of allowing manual trades to be made in time against them. Without this, they would lose much of their (manual) business.

 

[DAV]

Quote from Kevin Schmit:

IB does Forex stops on a computed
price, (bid+ask)/2.

This is incorrect. For a sell stop we wait for the ask to reach the specified price, then sell at the bid.


I think you mentioned in another post that market makers at IB's IdealPro do not have to honor their bid/asks..


Incorrect, we do honor our bid/asks.