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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (12273)3/10/2001 9:37:02 PM
From: dli  Read Replies (2) | Respond to of 18137
 
Read the fine print..they are trading against retail order flow information. Very similar to what Knight does (except IB gets a cent a share instead of paying for order flow). IB is one of the largest program trading outfits out there.

How do you trade against direct access order flow? Could you please back up that claim? Where do they state that? From what I've been told they don't engage in any proprietary trading at all. As can be verified from the NYSE's program trading reports all their program trading is conducted on an agency basis.

They do accept payment for order flow on options orders from exchanges that offer it, but that's independent of their order routing and as a direct access broker customers have full control over their routing anways if they wish. They also state explicitly that there's no preferential treatment of Timber Hill's market making operations with respect to options.

Dave



To: TFF who wrote (12273)3/10/2001 10:22:54 PM
From: Mark Davis  Respond to of 18137
 
Hmmmm. Well actually I hope IB is trading 'against' my orders. That means I'll get filled more often and faster at the limit price I entered and in a heartbeat most of the time.

Just kidding, and I don't think you can trade against instantaneous, direct executions. In fact, the few times IB offered a direct link to a MM, it was pulled because the flow was unprofitable.


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