Interactive Brokers FX horror fill 1.26% slippage on stop...

DashRiprock

Experienced member
1,650 482
ive seen this more than once on trade to win.

Look, a bucket shop is where the other side actually have the other side of your trade. that's teh definition of what a bucket shop is as far as I know.

there are execution brokers who will quote you best bid/ask, and deal at those prices on your behalf. So if you give them a buy limit order, you have to wait for it to go offered at your price to get your order filled. These aren't bucket shops these can be very highly respected firms.

then are are venues like ECN's which collate their price feeds from various sources and allow you to use their credit lines to make or take prices in a double sided market.

orders with each will behave slightly differently under different circumstances, and to be honest a responsible trader will know exactly the nature of how his orders are being handled, where and by whom, and the specifics of how the matching algorithm will allocate him fills - including, for example, when there is downtime on the exchange.

whinging about it or saying "I bet IB got a better price than you 'cos they needed to hedge" is just plain stupid. Man up and learn how your orders are handled ffs. There are downtimes/pre-market/post-market/auction phases on some of the biggest exchanges in the WORLD, you can't hold IB responsible for you not doing your homework.
 

DaManJ

Junior member
20 0
100 pips better than their order, which is correct for a true limit order. My guess...they got filled at their limit price.Peter

Yes i was wondering that too. just in terms of the hedge though i guess as a broker they will only hedge their net long / short position rather than on a per trade basis. but yeah, it makes sense they wouldn't give much away for free if the market never really closed.

They may all be a bunch of angels over there at IB, I don't know.
But one thing i do know is that we have laws in society because people aren't typically good at playing nice.
So if you consider that fx markets aren't regulated, then there's no rules to keep people in check, so it is inevitable that people get up to all sorts of mischief, as there is much evidence for :)

But my opioning on this event though is, even a large broker like IB with 4bln under management is small fry vs the Hedge Funds and IBs of this world with hundreds of billions, so to those I would look to find an explanation for these market antics. After all it occured during the end of the US session, not the main Japan market. The carry trade unwind bites again no doubt.

That said i think this 15 min downtime is very bad for customers. And if other, smaller brokers can live without it, I don't see why they can't.
 

DaManJ

Junior member
20 0
Man up and learn how your orders are handled ffs.

Thanks for you constructive input. I will definitely try to 'man up' as i know that is what is missing in my life and what i need to do to be a better person. I'm sure you can lead the way in showing how to be a real man. In fact please share more of what you think i need to do to achive that, i'm all ears. I don't know how to do it without your help.

In fact, if you can, please advise which other brokers out there i should try that will expose me with more opportunities 'man up'? I'd be looking for brokers with more down-time and slippage to start with - i'm starting to feel like more of a man now just thinking about it.
 

DaManJ

Junior member
20 0
thanks :) but i think a hooker is going to give me a bit too much slippage
 

wackypete2

Legendary member
10,229 2,055
ive seen this more than once on trade to win.

Look, a bucket shop is where the other side actually have the other side of your trade. that's teh definition of what a bucket shop is as far as I know.

there are execution brokers who will quote you best bid/ask, and deal at those prices on your behalf. So if you give them a buy limit order, you have to wait for it to go offered at your price to get your order filled. These aren't bucket shops these can be very highly respected firms.

then are are venues like ECN's which collate their price feeds from various sources and allow you to use their credit lines to make or take prices in a double sided market.

orders with each will behave slightly differently under different circumstances, and to be honest a responsible trader will know exactly the nature of how his orders are being handled, where and by whom, and the specifics of how the matching algorithm will allocate him fills - including, for example, when there is downtime on the exchange.

whinging about it or saying "I bet IB got a better price than you 'cos they needed to hedge" is just plain stupid. Man up and learn how your orders are handled ffs. There are downtimes/pre-market/post-market/auction phases on some of the biggest exchanges in the WORLD, you can't hold IB responsible for you not doing your homework.[/QUOTE]

We've been through this before, and as before you completely miss the point. Just because a firm offers an ECN for trading doesn't mean it can't be a bucket shop. There can be problems in how they handle orders, errors, refunds, etc. In this case IB was closed, not the market. IF IB doesn't handle the orders correctly then they are no better than bucket shops. Whether they do or not I don't know as I don't trade with them. I was only offering information so people can make their own decisions. An interested party would need to take the time to find out for whatever reasons.

I do agree with the very last line of your post.

Peter
 

DashRiprock

Experienced member
1,650 482
We've been through this before, and as before you completely miss the point. Just because a firm offers an ECN for trading doesn't mean it can't be a bucket shop.

Well, actually, it does. IB aren't on the other side of your trades, they just take a commission from matching the orders.


There can be problems in how they handle orders, errors, refunds, etc. In this case IB was closed, not the market.

the ECN was closed, which IS the market you are trading on. The market was closed. Other venue's were still trading, but you haven't got orders with those markets, you have orders with IB's ECN, which is closed.



IF IB doesn't handle the orders correctly then they are no better than bucket shops. Whether they do or not I don't know as I don't trade with them. I was only offering information so people can make their own decisions. An interested party would need to take the time to find out for whatever reasons.

I do agree with the very last line of your post.

Peter

I don't see that there is anything wrong at all with what happened to the OP.
 

wackypete2

Legendary member
10,229 2,055
Well, actually, it does. IB aren't on the other side of your trades, they just take a commission from matching the orders.

You are misreading everything I type. For 1 thing I never said IB was a bucketshop. 2nd, any broker that offers spot forex on an ECN CAN still be a bucketshop. It's NOT a true ECN. There isn't a true ECN in spot forex...it doesn't exist. Look up bucketshop on Wikipedia. You don't trade forex, right? I've told you before it isn't the same thing as the markets you trade.


the ECN was closed, which IS the market you are trading on. The market was closed. Other venue's were still trading, but you haven't got orders with those markets, you have orders with IB's ECN, which is closed.

Again, since you dont; trade forex you just don't understand about spot forex ECN. the ECN is NOT the market, it is the venue on which you are able to place trades. By your definition, if IB servers went down, then the market is closed....well it isn't. Everyone else is still trading.



I don't see that there is anything wrong at all with what happened to the OP.

Agreed.


We've argued this before. The posts are searchable. I'm not going to rehash it any further.


Peter
 

DashRiprock

Experienced member
1,650 482
You are misreading everything I type. For 1 thing I never said IB was a bucketshop. 2nd, any broker that offers spot forex on an ECN CAN still be a bucketshop.

OK, technically this can be true.

It's NOT a true ECN. There isn't a true ECN in spot forex...it doesn't exist. Look up bucketshop on Wikipedia. You don't trade forex, right? I've told you before it isn't the same thing as the markets you trade.

Fractal wrongess here my friend:

EBS
Reuters Matching
Dukascopy
Lava
Currenex
Hotspot

look up what an ECN is on wikipedia mate! And don't assume that because I don't trade currencies now that I never have done or don't have experience of ECN's.

Again, since you dont; trade forex you just don't understand about spot forex ECN. the ECN is NOT the market, it is the venue on which you are able to place trades. By your definition, if IB servers went down, then the market is closed....well it isn't. Everyone else is still trading.

exactly - and if the ECN is closed you are unable to place any trades through it, therefore any orders you have left working will not be executed while the ECN is closed. You either need to wait until the ECN re-opens or place an offsetting trade at another location if the positions are fungible. You can't issue an order with one ECN and expect it to be executed on another.
 

nine

Senior member
2,038 507
A classic trading tale: it sucks but suck it up.

It's a trader's responsibility to understand the environment they operate in - and IB's downtime after the globex futures close is no secret. They did what they do every day. And this time they took some grief from people who forgot about it and didn't realize how big the gap could be ... well, when one is betting on nuclear emergencies how big can the gap be?

Judging by the anger expressed, the OP took an extreme speculative position but didn't think through all of the possibilities. And one of them bit him hard. It happens; a little like all those news trading newbies.

To the OP: you just have to learn from it; and the biggest learning is that if you see something too good to be true and you can't see the sucker at the table .... well you know the rest of it.
 

DaManJ

Junior member
20 0
Judging by the anger expressed, the OP took an extreme speculative position but didn't think through all of the possibilities. And one of them bit him hard. It happens; a little like all those news trading newbies.

To the OP: you just have to learn from it; and the biggest learning is that if you see something too good to be true and you can't see the sucker at the table .... well you know the rest of it.

I'm really glad you replied. You are far more engaging than the html elements on an otherwise empty web page. You may in fact be on par with the interest i would give a banner add advertizing viagra, which i would need if I ever met up with that aformentioned hooker.

You are indeed "Judging" what you read and you are entitled to your opinion. From where i'm sitting though it's called perseverence, not anger. Its about persevering until one gets a reasonable answer. Though i guess you would take the first price when you visit a used car salesman because that is the manly thing to do?
It's the same with a conversation with a support person, they often just want to end the conversation and move onto the next call. IB is tough because you have tickets and web chats, its not that easy to get the information you are after.

So this angry speculative newbie sucker was just trying to get some information as to why he just got over 100 points slippage, as aside from a meteorite striking manhattan you aint gonna get that slippage when the market is trading.

I look forward to more engaging comments.
 

Vaco

Senior member
2,134 269
Actually you can get that kind of slippage when the market is open, /igot stung a couple of months back when i left a trade open through a particularly bad nfp release and the reaction that followed. stop got filled 70 pips below where i had put it.

This was with fxcm,
Nothing I could complain about really, i got caught out but good money management meant it was an annoyunce rather then a disaster.

End of the day i got filled at the next best available price, as did you.
 

DaManJ

Junior member
20 0
Actually you can get that kind of slippage when the market is open, /igot stung a couple of months back when i left a trade open through a particularly bad nfp release and the reaction that followed. stop got filled 70 pips below where i had put it.

If i got that slippage on non farm payroll i would not be bothered.
However closing 'your' market whilst everyone else is open is just poor business.

Trading is not about holding your balls and hoping for the best. Casino's are great for that. So anything that increases uncertainty / risk for no good reason is just bad for trading profitability.

Aside from that experience with FXCM how do you find them? Can you recommend a good broker?
 
 
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