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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Old Jun 17, 2004, 7:48pm   #8
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mcharlton started this thread Ok will look into it a bit more...

The only thing that confuses me is that when watching the last price come through there are orders being placed with prices that I cannot seam to get..

ie... share trading at 12.75 - 13.00 I put in price of 12.76 and it is not allowed. then the next trade comes up at 12.76... How are these going through when mine are not...

very irratating!!

but I will look into it more... thanks for your help...
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Old Jun 17, 2004, 7:54pm   #9
 
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Quote:
Originally Posted by mcharlton
Ok will look into it a bit more...

The only thing that confuses me is that when watching the last price come through there are orders being placed with prices that I cannot seam to get..

ie... share trading at 12.75 - 13.00 I put in price of 12.76 and it is not allowed. then the next trade comes up at 12.76... How are these going through when mine are not...

very irratating!!

but I will look into it more... thanks for your help...
You should be able to get any price that you see going through...even if its an upstairs trade. Unless IB have the wrong tick size on their end which is possible. When you see the price go through on time and sales is it shown as an A flagged trade or do you not see the trade flags ?

Stew
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Old Jun 17, 2004, 7:56pm   #10
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mcharlton started this thread Can't see the flag trades... maybe the best thing to do is contact IB and see what they say about it...
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Old Jun 17, 2004, 7:56pm   #11
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give the symbol that you are watching. I can lookup the tick size that IB has for it
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Old Jun 17, 2004, 8:01pm   #12
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mcharlton started this thread Symbol: ISYS

How do you look up the tick size??

Cheers.
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Old Jun 23, 2004, 11:12am   #13
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Quote:
Originally Posted by mcharlton
Symbol: ISYS

How do you look up the tick size??

Cheers.
mcharlton

Invensys has a 0.25p spread or tick as others have put it. If you are using direct access then you can only enter orders in increments of 0.25p.

IE: ISYS is trading at 17.25-17.5 and you wish to buy, you can choose to either pay the 17.5 or place a limit buy in the book at 17.25 or lower in increments of 0.25p's. Of course you will go to the back of the queue if others have orders in front of you at the same price.

The trades you see going through at 17.26 etc are "O" trades. These are orders put through a market maker behind the book. EG if you were trading via a high street broker. But a trade of 17.26 when the bid is 17.25 will usually be a sell not a buy.
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Old Jun 23, 2004, 4:33pm   #14
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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...)
mcharlton If I understand you right I think you have the bid/ask prices the wrong way around. 100/110 means you can buy at 110 and sell at 100. You cant make money trading against the spread which is what I think you are trying to do?
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Old Jun 23, 2004, 4:59pm   #15
 
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Sounds like he wants to get inside
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