What this mail from IG mean?
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GraHal, that is exactly the part I don’t “trust”. We may wonder, for example, whether the Pending Orders (Limit, Stop) is actually at the Broker when it concerns IG. When they would not be, and PRT hands a Market Order to IG when your Pending Order’s price is touched, all reads more consistently to me. So with that thought, read the letter again.
Additionally, read Nicolas’ #1 in this context.Lastly, allow me : Nicolas’ #4 is nothing from Nicolas but is from IG herself. This subject drops from the blue sky ?
No, I have told about this many times before (because I was told by IG personally and not by “just someone”). #4 means that you have slippage of miles, which technically is not slippage but sluggish manual dealing by IG, very maybe by now automated means as explained in #4 (the steps), and in advance justified by means of small print (#4 given to Nicolas who now made it (almost) formal.Considerations Regarding Slippage: From our perspective, it is possible that this change may result in increased slippage.
I repeat (if not clear yet by implication) that this is not text from Nicolas, but from IG. And because it is text from IG it is sadly to be interpreted as :
We are all for your trading experience and that your systems are not being thrown out (which we don’t mention as such); it will therefore be OK with you that we gain a little more over this new feature (by means of more slippage up to huge slippage just like before), because that is what it net will come down to.
If I am too negative, it could be a good idea to create a thumbs-down in this forum (as the opposite of Thanks) – it can be applied many times to me and could therefore be useful. 🙂
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@inverse / Inv, I like to respond to your questions, but for now I have too much problems in understanding your language. But I may try in a next post after all. For now :
IM(H)O it is all baloney what IG tries to put on us. There *is* no such thing as a price which moved in between our putting the order (Limit or Market does not matter) and when IG fi-na-ly receives it. It is like Grahal suggested (or at least the gist of it) : IG just puts pup the distance when they feel like it, which is with due Fed news but which is also due to bugs in their systems (during day time, nothing going on). A thing like a requirement of 100 points of distance just does not exist, but they throw it at us anyway.
Will that be solved by some new means of Limit -> Market blahblah ? come on.To remember : this change is probably (up to hopefully) because of my own complaint and very strict cases, IG had to justify for. Or at least the other day, via my local PRT support PRT urged justification for happenings which can’t be other than not-so-legal manipulation. This “letter” seems to be a solution to that, but all what I see is that IG found another trick and masquerade.
So Yes, the part of the “system will not be thrown out” (again, without them explicitly mentioning that) will well be true and in the end genuine. But the infinite possibility to give you a slippage from here to Tokyo is something you need to see, and see fast before it is too late.
In addition, deep down in my mind lures the idea that they most certainly are not there to help me, never mind I may have stoked this fire. I mean : IG will most certainly not lose money over some individual who finally could prove manipulation and held them responsible for the happening as such (with the fine help of ProRealTime in Paris). Thus, nothing will change, meaning : your order which complies to the 4 point distance (Nasdaq), will now suddenly enter at 20 points distance, you losing 16 points and nobody can complain because it was all in the small print. Mind you, it was not, but with the text from Nicolas it suddenly is (whether this is intentional I don’t know, but don’t underestimate politics behind the scenes – Nicolas may have received a text from IG with “clarification” and in all honesty it is posted because “it is good to let know” (IG told)).
Below you see what this is about. The special occasion for that day, was that the “Fed news” protection by IG lasted for 1 hour and 20 minutes (you see it is 21:02 (Amsterdam) there, while news starts at 20:00) and I recall 24 attempts to restart systems because they all were thrown out immediately when the code deemed it good to open a position. So instead of earning EUR 2000 (on estimate) during that time period, I earned nothing because of systems thrown out. And this is not all, because I was fighting for this 1h20 to get the systems in over and over again, all in vain. And you know what ? when they finally kept on running, the moment was over and I earned nothing.
And THIS is what IG is now going to solve. They now will (want to bet ?) :- Deal with your incoming positions manually instead of setting the distance to crazy high;
(notice that they already deal manually with your Exiting positions during such periods) - Do this with 4 persons only (they just don’t have more for this);
- My experience from Exiting positions tells me that this can last 90 seconds because a. my exit (SL !!) is at 15000, b. they are at it when the price is 14980, c. they wait and hope for a bit to let recuperate the price to close to 15000 again and when this does not happen they finally press a button hoping that I won’t complain too much. Meaning since the letter (per 28-03) : they will press buttons for your Entries (you too) knowing that they must have the time to hedge things.
- They call this slippage.
Let me also add for this special occasion that where this concerns Limit orders (for Entry), I could show you an advisory email which suggests with a “you won’t do that anyway” : when you make that Market Orders all will be fine. And this is also – or especially – in the context of large orders (think 5-6M) or many orders within a time span, if only it concerns AutoTrading. Read the text from Nicolas again now. 😉
Net, I would say we will be off for the better. Suppose I would lose on average 10 points per Trade, then roughly I would earn maybe 1900 instead of thee theoretical 2000, while currently I have nothing but frustration. We will need to see how things work out for real, which could be up to No Entry at all, because if my order is set 20 points higher the price may not be touched, also knowing that the pending order lasts 1 minute only (in my case), so the moment will pass.
Exciting times ? I think so. Something else for a change.1 user thanked author for this post.
The brief I shared earlier (https://www.prorealcode.com/topic/what-this-mail-from-ig-mean/#post-229342) was authored by me, based on the information I received from a recent meeting with the technical team.
There has been no change to Limit and Stop orders. To clarify: IG previously executed market orders sent by you using limit orders. Going forward, they will exclusively use market orders for this purpose.
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I hit PRT @ 260ms from AUS, so I’m not sure what the end-to-end delta is for trade execution
I hope this stays in-topic (so far so good) but if not it will be my fault.
I think I asked you one whether you worked with the API from PRT – which would be in the context of PRT-IB because I don’t think such a thing exists with IG. Anyway, we now talk about IG and assumed you just work on their servers in Paris, there is no round trip latency involved whatsoever. OK, from Paris to the UK somewhere (but we have the Eurotunnel these days – haha).
So No, the execution is immediate.No full (e.g. Nasdaq) points can rise in between your execution and when it arrives at IG. Btw, the other day (was a topic regarding Eurex) I showed the entries all at the exact minute (with 1 minute TF). So Yes there can be slippage, but it would be in the realm of 0.01 points (I did not do the math). This alone makes the letter baloney and if not, someone will explain it to me. 🙂
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ahoj!
my understanding of the announced change is that it will affect manually placed “at market” orders, so for automated trading and in particular for my system entries which are 99% “stop” orders (others are “at market” and never “limit”) I do expect either a) no impact or b) slight improvement in terms of less slippage, not more.
why possibly a: my stop entry orders (if placement of the order not rejected due to those idiotic min.distances) are executed like real “at market” orders when intended price level is reached or exceeded, so execution is at intended price level – or with some slippage, but they are always executed, never rejected like sometimes those manually placed “at market” orders, which are in fact not “at market” orders (which I did not know 😀 because since many years not trading manually and I can’t remember how was it so many years ago…). and I also never got a rejection of “at market” orders placed by algos.
why possibly b: less/no rejected manual “at market” orders by IG means logically more executed orders – means more liquidity – which means in fact less slippage, not more. well, this I assume would be the effect in the real/free market where prices are driven by supply+demand+volume. but since CFDs are in that sense not real markets, I am not sure if we will see that positive effect on slippage, at least I do not expect negative one.
why IG is implementing that announced change: well, we/I don’t know for sure, yet that argument of “better trading experience” I see purely as sales argument: they need to “sell” the change somehow in positive way to us, while the real backround might be very simple and logical: they want to earn more money, that’s their “raison d’être”, so why not. though I think in this case they don’t intend to earn more by “opening the doors” for more slippage, but simply by executing those fake “at market” orders which were so far rejected because in fact being “at limit” orders. more executed trades – more revenue for IG (and for PRT of course).
regards
justisan
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- Deal with your incoming positions manually instead of setting the distance to crazy high;
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