QQQ slippage with IB's smart routing

When you short a stock on ISLD via IB does it require a up-bid?

I know the legal answer, but has anyone tested this?

Thanks,

:)
 
It might just be my system, but I frequently will get price improvements on SMART versus the ISLD bid or ask on my trading program that uses the API.

On the other hand, there are times when the market is about to move very fast, and I get screwed by SMART. Sure be nice when IB has order routing through the API - seems like it would be easy to do. . .
 
I trade them most every day. Use market order entries to ISLD. Very fast. No difference I see long or short but I do not read my actual executions. ISLD gets me in and out instantly which is all I care about. Had big troubles with that on the NYSE route but don't recall abusive slippage back then - just slowwww.

Geo.
 
I trade the SPY's through Island and must say the fills and liquidity are very good. When instinet and Island merge -- the volume will increase and spreads should even tighten up a bit - not that the spreads are big now - for a $90 stock - the slippage is very minimal.
 
Originally posted by o_2_b_sean
TGregg,

"screwed by SMART" is what amount of slippage? .05? .10?
More...

Here's an example.

Say the QQQs are .23x.24 SMART, .20x.24 ISLD and my system is long and needs an immediate exit. So, it'll send a sell at .20 (via SMART `cuz that's the only way to route via APIs). SMART looks at it and says "Hey, I can make 3 cents for this guy and hit the .23" and routes it that way. Sometimes it happens to be NYSE, and in some of those cases the market moves downwards even more, and my order is not executed. Meanwhile, ISLD goes to .15x.18. In that case, I'm out a nickel. :(

I'm not sure if this would technically be slippage - more like a routing problem.
 
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