Interactive Brokers and Options trading in Australia

[sails]

Re: Interactive Brokers and Options trading in OZ

Hi Fox,

OK, the excel spreadsheet seems to be working - will know for sure when the MMs decide to start work for the day...

But where do you find the other windows in the image you posted? They are the ones above excel spreadsheet. On second thought, that might be because I didn't load up the samples. I simply used my existing TWSDDE spreadsheet that I set up some months ago to get historical data.

 

[Fox]

Re: Interactive Brokers and Options trading in OZ

But where do you find the other windows in the image you posted? They are the ones above excel spreadsheet.

Good morning Sails,

I have been discussing the 3 flavours of the TWS API, namely the Java, C++ and Excel varieties. The images of windows above the image of the excel spreadsheet that you refer to, are from the C++ flavour of the TWS API.

If you are keen to try them out, the steps to set it up are in post #116. The application is called C:\IB_API_9_62\TestSocketClient\Release\client2.exe.

Oz market opening soon. You should be seeing MD on your TWSDDE soon. Fingers crossed.

Fox

 

[sails]

Re: Interactive Brokers and Options trading in OZ

Thanks Fox! BHP stock MD is updating dynamically and so far just one line of BHP 37 Oct call options. Will see if more lines show up as the day progresses for the option.

OK - will read your other instructions. Maybe they aren't necessary at this stage, will check it out anyway!

 

[freebird54]

Re: Interactive Brokers and Options trading in OZ

Forgive my simplicity but I just have multiple pc screens with Westpac or any other market depth /last 10 trades open

Of course the market "makers" [read manipulators] hover with their automated entry or whatever they do [maybe someone can explain why there are always 10 or 11 orders in the market depth and as soon as you go on they all change] to drag you up/down anyway so having the information is of limited value

After waiting all day to get set so many times I often put an order between the bid / ask if it is similar to the last trade and get filled immediately;-)

I then can go on to enjoy my day

I also see with IB you can place an order where the option bid/ask you enter moves relative to the underlying - does anyone know how this can be calculated easily?

Comments welcome on this

 

[sails]

Re: Interactive Brokers and Options trading in OZ

TWS doesn't always get Oz dividends amount correct and this consequently distorts IV calculations. So, it is advisable to check the dividend amount in TWS and change/save if incorrect.

Here is a link to a recent discussion in another thread that I thought might be helpful to someone else down the track and is certainly applicable to this thread: https://www.aussiestockforums.com/forums/showthread.php?p=505751#post505751.
The posts in this discussion range from #481 - #487

 

[sails]

Re: Interactive Brokers and Options trading in OZ

After waiting all day to get set so many times I often put an order between the bid / ask if it is similar to the last trade and get filled immediately;-)

I then can go on to enjoy my day

If I am reading your question correctly, yes, it can sometimes work quite well. If you see another trade go through, it is possible that you could get the same price. Just make sure though you know you are inside some sort of fair pricing and that the last trade hasn't just ripped off another retail trader!

It's a bit risky just looking at the last price traded (unless it is close to the mid price) because it could be one leg of a spread order that's just gone through - and it may be the worst priced leg of the spread.

That said, I have often found that by immediately placing an order slightly in favour of the MM, it is often filled quite quickly. But that's no guarantee. I have also seen them ignore that - they want a bigger bite of my money! If it's an opening order, I quit and move on to another trade. If adjusting, I would look at doing so with stock - so they miss out altogether.

I also see with IB you can place an order where the option bid/ask you enter moves relative to the underlying - does anyone know how this can be calculated easily?

Comments welcome on this

I haven't done this, so hopefully someone else will answer your question on the mechanics of setting this up.

However, if the MM wants a bigger slice of the spread, I can't see how bobbing around at the same amount within the MM spread is going to help get a fill unless another retail trader wants to take the opposite side and is happy to pay a little extra to get a better fill than the MMs are going to give.

Hope that makes sense!

 

[cutz]

Re: Interactive Brokers and Options trading in OZ

Hi Guys,

I've just started using risk navigator which by the way is a beautiful piece of equipment. Total greeks for each position and underlying are laid out in an easy to read format so i don't need to play around with risk graphs as much.

Problem I'm having at the moment is as I move positions around during the day the underlying contracts that are closed off are not removed from the table unless i do a system restart.

Anyone here got a tip on how to remove closed positions quickly.


Thanks in advance.

 

[cutz]

Re: Interactive Brokers and Options trading in OZ

Hi guys,

For info my above query has been resolved. Suspend/Resume does it.

 

[Fox]

Re: Interactive Brokers and Options trading in OZ

For info my above query has been resolved. Suspend/Resume does it.

That's handy to know. Thanks.

 

[Fox]

Re: Interactive Brokers and Options trading in OZ

I've just started using risk navigator ...

Does anyone know how to display the Profit and Loss graph of the risk navigator, in dollar amounts, as of today and at expiry like that shown in Hoadley P&L graphs?

 

[Fox]

Re: Interactive Brokers and Options trading in OZ

Reg T Margin
Here's a tip that I got from IB customer support. I asked how I can find out what my Reg T Margin requirement WILL BE before I transmitted my order. The reply was that you can't know what your Reg T Margin will be until the order is executed. How pathetic.

The work around that they proposed is cumbersome but can be done. IB proposed that I placed the identical trade in my paper trading account and then watch the Reg T Margin figure change.

For those interested, I tried their suggestion out. For an XJO single contract bull put, the margin is:

Reg T Margin = (sold strike - put strike) * 10.

NB. 10 being the XJO index multiplier.

For a 4000/4500 bull put, the Reg T Margin = (4500 - 4000)*10 = $5000.

 

[sails]

Re: Interactive Brokers and Options trading in OZ

I noticed the message below that popped up in my demo account, but it doesn't come up when trading option orders.

IMO, the same protection should be there for option orders to prevent MMs stripping cash out of retail trader's accounts by trading one leg of a spread at prices way beyond the bid/ask spread which is neither fair nor consistent.

 

[freebird54]

Re: Interactive Brokers and Options trading in OZ

If I am reading your question correctly, yes, it can sometimes work quite well. If you see another trade go through, it is possible that you could get the same price. Just make sure though you know you are inside some sort of fair pricing and that the last trade hasn't just ripped off another retail trader!

It's a bit risky just looking at the last price traded (unless it is close to the mid price) because it could be one leg of a spread order that's just gone through - and it may be the worst priced leg of the spread.

That said, I have often found that by immediately placing an order slightly in favour of the MM, it is often filled quite quickly. But that's no guarantee. I have also seen them ignore that - they want a bigger bite of my money! If it's an opening order, I quit and move on to another trade. If adjusting, I would look at doing so with stock - so they miss out altogether.



I haven't done this, so hopefully someone else will answer your question on the mechanics of setting this up.

However, if the MM wants a bigger slice of the spread, I can't see how bobbing around at the same amount within the MM spread is going to help get a fill unless another retail trader wants to take the opposite side and is happy to pay a little extra to get a better fill than the MMs are going to give.

Hope that makes sense!

Nearly a year later and it still seems to work the same - no big problems - also using IB spreads for rolling options

 

[Kryzz]

Is anyone able to clarify how to buy just straight put options in IB?? Not sure if I am confusing myself or not, but am finding this rather frustrating.

This screenshot is from Commsec, are these options available in IB? I can't seem to be able to search for them?

Hoping to avoid paying $35 in brokerage via commsec.

Thanks

 

[cutz]

Is anyone able to clarify how to buy just straight put options in IB?? Not sure if I am confusing myself or not, but am finding this rather frustrating.

This screenshot is from Commsec, are these options available in IB? I can't seem to be able to search for them?

Hoping to avoid paying $35 in brokerage via commsec.

Thanks

Try "AP"

 

[sails]

Is anyone able to clarify how to buy just straight put options in IB?? Not sure if I am confusing myself or not, but am finding this rather frustrating.

This screenshot is from Commsec, are these options available in IB? I can't seem to be able to search for them?

Hoping to avoid paying $35 in brokerage via commsec.

Thanks

Yes you can get XJO options in IB. As Cutz said, type AP into a watch screen then choose "options" and select what you want. You can also use "option trader" and type in AP as the security and then select expiries and strikes with the drop down boxes.

IB have archived webinars on their software which you might find helpful.

 

[Kryzz]

Got it. Thanks guys.

Will you not be to view the last trade price in IB, comparing this screenshot to the comsec one? Or am I missing something.


NB: Will get onto the webinar soon also.

 

[freebird54]

Hi All

Anyone here use IB to trade options in the aussie market. If so what feedback do you have ? The rates seem quite appealing, but before I sign up Id like to know what your thoughts are with options trading via IB.

Cheers!

No problems at all
free data from w/pac or c/sec so u dont have to use theirs
2 platforms both good
If u r on the gold coast there is a free seminar on option trading through AIE - I can give you the links

yes I use them