YM ECBOT Question

[rossored]

Does anyone know ....

with the move from ACE to ECBOT today on Dow futs, is there a difference with stops? I seem to remember reading something from Johnny Rotten a while back about the difference between stops held on ACE and GLOBEX...? Something along the lines of the order is "native" (ie held at IB not the exchange). What effect does this actually have - assuming it is the case - other than the obvious one of if IB goes tits up my stops wont get executed, presumably?

Or have I got this completely bottom-about-face???

RR

 

[stevet]

you have a good and an important point

i would get your broker to verify the situation by email to you since the broker is the one that you will need to take it up with afterward if you feel there is something wrong

for sure if you used to do a bit of trading with stops - you may notice a difference as the last trade reporting in the exchange system is now different

but that is a seperate issue to the stops being hit

but as it happens the person that replies to you at the brokerage will often get this sort of technical stuff wrong when there is a changeover and may send you the wrong information- which at a later time may prove to be a "get out of jail free card" should you be able to use the emailed information to your advantage

 

[Skimbleshanks]

In the Status column on TWS there will be either a blue or a bright green colour after you have transmitted your stop.

If it is blue, the stop is resident on IB servers.
If it is green, the stop is resident on the exchange's servers.

That's the easiest way I know of to tell where your stop is residing.

 

[rossored]

OK, thanks for that.

So, if the stop is held at IB's servers, they will wait for the stop level to be hit at the exchange before transmitting it? And presumably there is no way to decide where your stop is held?

 

[stevet]

Skimbleshanks

you seem up on IBs platform - cant you set the IB platform to respond differently in how the last price does or does not pop the stop - and if the last price reporting in now different on ECBOT - which it is - the effect of last price popping the stop may now be different to what a user was used to before

 

[Skimbleshanks]

Yes you can change the way the stops are triggered.

But whatever you choose you can see how IB handles the stops by the colour displayed. So for example, if you choose a Limit stop on Globex then it will be green (held at exchange), and a Market stop will be blue (held on IB's servers until price triggers it, when it will be sent to exchange as a market order). I believe these are the exchange preferences, rather than IB's.

But whatever you choose, you can immediately know the status by the colour.

 

[stevet]

yep

but what i was trying to get out is that i think on IB you can set the stop to only pop if the stop price gets hit twice for example

and since the ACE system did not report all trades - it maybe now that a specific user may want to change the number of times the last price has to hit the stop before the stop is popped

the new system should now be reporting all trades

 

[sidinuk]

ecbot does not support any stop orders locally. So now you have to rely on IB to send it to the exchange when triggered. However I do remember reading somewhere on IB that if their system goes down then they will honour all simulated stops - but I can't see how they would, I might have just imagined that!

Stops can be triggered from the last price, double last or double bid/ask.