Looking to trade professionally, directly with the banks

To begin, I really don't turn over the sort of amount necessary to access the lowest PB fees on offer, so going through a secondary PB doesn't make it worth my time to explore. Second I would really only be using the PB to access the Hotspot Institutional platform, and since their retail pricing has come into line with the institutional pricing, the point for me is rather moot.

I wasn't aware that you could leave an open order (bid or offer) on the IB platform and log off. I find that to be dangerous since you could lose your internet connection and not know you have dealt until you log on again, whenever that might be. You are able to leave resting orders with Hotspot (limits, s/l, etc) and log off however.

Inquirer, what do you mean by "retarded"with regard to the demo prices on Hotspot? Are they drooling all over themselves or something??
 
Inquirer:

Apparently, prices on the Hotspot demo are delayed by one second, but you can arrange to view the live platform on a temporary basis by writing to Hotspot.
 
taboni:

I tried the demo last year.

When I compared the hotspot prices to other price feeds, eg. the majors, some rates moved more or less in line with other price feeds. When the other price feeds moved up, the hotspot price moved up, when the other moved down hotspot price moved down, more less at the same time by the same amount.

But once in while a particular rate appeared to be stuck for a few seconds, while the other rates moved in line with the other price feeds.

I wouldn't mind those retarded prices if you think of that as arbitrage opportunity.
 
If you are trading on a wholesale type platform then you are expected to trade like a professional trader.

You might get away with hitting a frozen price once but do it twice and I would expect your account to be closed.
 
taboni:

Thanks for sharing your personal experience, which is very helpful and enables readers to gauge whether a (second-tier) PB, ECN, or broker is more suitable for their needs.

I fully agree with your risk assessment about open orders. It's just that very occasionally I need to scale into a fairly sizable medium-term position (say, in a carry trade) and open orders provide more flexibility in such circumstances.

IB allows open orders (eg GTC) on a simulated basis.

Not being familiar with the term "resting order", I just looked it up at Hotspot's site. Thanks for mentioning it. It takes a while to get to know a new platform. :)
 
Quote from Lon Eagle:

If you are trading on a wholesale type platform then you are expected to trade like a professional trader.

You might get away with hitting a frozen price once but do it twice and I would expect your account to be closed.
More...

If the price quotes on a particular platform which is broadcast worldwide is not binding, I would seriously think twice about having any business dealings with that particular platform's company.
 
LonEagle, as a professional market participant for 16 of my 20 years in this business I couldn't agree with you more.

Inquirer, I am just going to clarify a couple of things. If I as a bank trader post a bad rate on EBS (say market is 81-83 and I post a 95 bid in error in a calm market) I will get dealt on. Then (in 99% of cases) the trader who dealt on the price will call me up and say "I know you posted a bad rate, nothing is done" This is how it should be and most of the time is done. This also applies to rates that are stuck, stale, etc due to technology issues.
If you take the stand that "they posted the rate they should honor it" then in most cases your account will be closed as LonEagle suggests. In most cases (unless you are a big hedge fund/corporate client) they really couldn't give a rat's ass if you ever dealt with them again since you are definitely not the sort of client they or any other big liqiuidity provider would want as a client.

WWX, in response to your question about open orders, Hotspot does allow
open GTC orders. What is cut off when you log off the platform are any bids or offers that you may have left open on the platform, not the ones you have entered for them to watch for you.
 
taboni:

Just to clarify, in relation to an existing position (open trade) one can enter a resting order (SL, TP, OCO) on a GTC basis. Otherwise, GTC orders aren't possible on Hotspot. I hope I understand this correctly now!

It seems that Hotspot's 10-point restriction on new orders and active order modifications is never enforced (on the demo) in practice. I've read many posts about this point on this forum and appreciate the rationale behind this rule, but am still getting used to the idea that, on a strict interpretation of this particular rule, even market orders are disallowed on Hotspot. Please correct me if my understanding is incorrect. Thanks!
 
Quote from taboni:

say "I know you posted a bad rate, nothing is done" This is how it should be and most of the time is done.
More...


How does a trader educate himself on the intracacies of dealing etiquette before he ever gains real interbank experience?

Is there a 'deailg etiquette for dummies' book i can pick up??
 
Quote from wwx:

taboni:

Just to clarify, in relation to an existing position (open trade) one can enter a resting order (SL, TP, OCO) on a GTC basis. Otherwise, GTC orders aren't possible on Hotspot. I hope I understand this correctly now!

It seems that Hotspot's 10-point restriction on new orders and active order modifications is never enforced (on the demo) in practice. I've read many posts about this point on this forum and appreciate the rationale behind this rule, but am still getting used to the idea that, on a strict interpretation of this particular rule, even market orders are disallowed on Hotspot. Please correct me if my understanding is incorrect. Thanks!
More...

There is a difference in terminology I fear with respect to what I call "orders"
An order is a limit, s/l or oco that you are leaving with the provider to watch for you GTC. This differs from those "orders" that ECN models allow you to place (bids and offers) directly on the platform, inside the spread if you wish. It is these bids and offers that automatically cancel when you log off the platform.

As far as your second point, market orders are never disallowed. What is meant by their guideline regarding the placement of orders refers to limit, s/l and oco orders that you want them to watch for you. This guideline does not apply to those bids and offers that you place directly on the platform, only to those orders that you want them to watch for you GTC. I hope this clarifies the situation.
 
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