Direct Access help???

This is a discussion on Direct Access help??? within the Brokerages forums, part of the Commercial category; I have just opened an IB account and was under the impression that by doing this I would have direct ...

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Old Jun 17, 2004, 3:04pm   #1
Joined Mar 2004
Direct Access help???

I have just opened an IB account and was under the impression that by doing this I would have direct access to the FTSe and therfore be able to beat/use the spread...

ie. Bid 100 - Sell 110 I would be able to put an order on for say 101 and then sell at 109... (simplified i know...)

If I try and do this a message appears saying 'does not conform to min price variation' what does this mean???

Thanks in advance...
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Old Jun 17, 2004, 3:10pm   #2
 
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Are you talking about the ftse100 index futures or individual shares? The ftse100 futures are probably too liquid to have a spread more than 1 pt and UK shares would be a no-go for this strategy as you won't cover expenses (commission and stamp duty).

What type of order are you trying to use? You'll have to use Limit's if you want to buy the bid/sell the ask.
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Old Jun 17, 2004, 3:13pm   #3
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mcharlton started this thread Individual shares... only using this to get a bit of advantage on price not neccasarilly to make money out of the spread... I am using limits...
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Old Jun 17, 2004, 3:19pm   #4
 
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Ok. I don't trade UK shares so I'm afraid I'll have to leave this one for someone that does!
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Old Jun 17, 2004, 7:32pm   #5
 
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Quote:
Originally Posted by sidinuk
Ok. I don't trade UK shares so I'm afraid I'll have to leave this one for someone that does!
mcharlton

I am guessing that the price you are putting in is not a multiple of the tick size - some uk stocks trade in pennies, some in half pennies etc... Probably worth checking that out.

Cheers

Stew
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Old Jun 17, 2004, 7:34pm   #6
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mcharlton started this thread Thanks for your reply but how do I find out the tick size for a share...?

ta.
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Old Jun 17, 2004, 7:43pm   #7
 
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Quote:
Originally Posted by mcharlton
Thanks for your reply but how do I find out the tick size for a share...?

ta.
The rules for the UK market are a bit crap compared to the rest of Europe, generally speaking the tick size is derived from the last trade price but this is only reviewed periodically by the LSE, whereas across Europe the tick size is implemented straight away. The info is available from the LSE but I think its only in their member feed.

Easiest way to do it is to look at the order book (assuming you have level II) and look at the last trade prices - if you spot one in 1/4 then you know the tick size is quarters etc etc. It may be on a web site but haven't really looked for it.

Stew
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