MultiCharts & IB Cancellation fee – how does it work in prac

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JoshM
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MultiCharts & IB Cancellation fee – how does it work in prac

Postby JoshM » 12 Apr 2012

IB charges a cancellation/modify fee for trades in American options and European futures.

As I understand it, for European futures, there is a cancel/modify fee of 0.50 euro per cancellation/modification, and a credit of 2.50 euro per execution in the same product on the same day. In other words, modifying an open position more than 5 times gives a cost of 0.50 euro per modification.

Interactive Brokers gives the following examples:
  • Customer enters an order for 10 contracts, modifies and cancels. No futures orders are executed the rest of the day.

    1 x EUR 0.50 = EUR 0.50 Modification Fee
    1 x EUR 0.50 = EUR 0.50 Cancellation Fee

    EUR 1.00 in modification/cancellation fees are charged.
  • Customer enters an order for 10 contracts, modifies the order 5 times and executes.

    5 x EUR 0.50 = EUR 2.50 Modification Fee
    1 x EUR 2.50 = EUR 2.50 Execution Credit

    Since credit is equal to cancellation fee, nothing is charged.
  • Customer enters an order for 10 contracts in ESTX50 and 10 contracts in DAX. Customer modifies his DAX order and executes the ESTX50 order.

    1 x EUR 0.50 = EUR 0.50 Modification fee (DAX)
    1 x EUR 2.50 = EUR 2.50 Execution credit (ESTX50)

    Since the execution credit only applies in the same product on the same day, EUR 0.50 in modification fees are charged.
My question is: how does this work in practice with automated trading through MultiCharts?

Say the automated strategy opens a position, and uses a trailing stop loss which is updated on every bar close. Does this mean that, after 5 trailing stop loss updates, the next stop update incurs a modification fee of EUR0.50? And how does this work (in practice) with pending orders are cancelled by MultiCharts?

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