Details and full information are important in cases like this. IB Pro doesn't sell flow and Eurex option orders are routed directly to the exchange. (there was even a comment in this thread claiming we trade against clients -which we flat out don't).
Given the speculation and host of naive, erroneous comments and totally false and deceptive thread title, I thought best to dig in to obtain the details.
I first went to T&S on bloomberg - couldn't find anything - no trades which means the trade did not take place on the main order book. I then went to our trade records and we were able to dig up the trade which did indeed take place.
The outcome:
Assuming I am looking at the one and only trade on that option on the day. I see the order entered as part of a spread/combo as follows:
Buy Dec 180 Put
Sell Dec 220 Call
With a buy limit of 23 which would go directly to the exchanges combo book
In short, the issue seems to be that is you entered your order as a credit and not a debit which led to a poor fill on the exchanges combo book.
So with these details which I believe accurately depict what happened, will you be kind enough to amend the title of your thread from IB ripping me off to something like IB gave me a better fill by $40?
For the sake of simplicity, I didn't complicate the matter here on ET with Risk Reversal (but fully explained it at the time to IB). That's also why I said I was trading at the market while in fact, I was submitting deep in the money LMT order which should get immediately executed at the market. but let's get to your post and details (i guess many will get lost from here on...)
I was indeed closing short RR but that really doesn't excuse IB a bit wrt
the problem I was mentioning here -
that you are not executing properly for your customers and rip them off in the process.
To say that you could rip me 3x more and therefore I should be grateful for 1x rip off is idiotic at best - you, "def", should know better. btw with 3x rip off it would make economic sense for me to go to the exchange for the bust - so maybe there was a reason why you did it the way you did...
Of course, I will not change the thread title. And I will not drop the matter as a matter of principle now...
bottom line is,
it doesn't matter how things work technically if the underlying principle of IB is not strong ethics and "fiduciary duty" to the customer...
Technically, there is nothing like a RR product for an almost infinite amount of combination that you can come up with...
Even IB defines a RR as a basket consisting of two legs and you charge a commission for the two trades respectively. And show indicative pricing based on a sum of the individual parts.
in this specific example you specifically say in the description of this specific RR this:
To buy 1 Risk Reversal means:
1: Buy 1 ADS Dec18'20 180 PUT @DTB
2: Sell 1 ADS Dec18'20 220 CALL @DTB
Huh? so that's how I would expect you to process it!!! (btw PUT was correctly executed at the offer so all the mispricing happened on the CALL side)
now suddenly some BS talk about exchange combo book with completely different pricing than what is readily available on the main book (and shown by TWS market data). and way worse for the client...i have no problem you send it somewhere else than EUREX but that means only for a possible "price improvement"!!!
it is like me selling MSFT stock trading at 200 at LMT=100 on SMART and you announce that you actually manage to sell it to some friend of yours and received a full 160 for it - when the market was 200 all the time. what a joke!
when you indicate pricing, specify pricing, etc on the underlying market (options), you should be bound to these underlying markets. and not say we sold it somewhere else where btw the prices are completely different (and worse for the client).
