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why negative spread occur in Mbtf/currenex? But not in IB？

  • Post #1
  • Quote
  • First Post: Feb 17, 2010 7:56pm Feb 17, 2010 7:56pm
negative spread occur in MBTF/CurrenEX platform ，sometimes it last for 3 seconds！！ But it never happen in IB! no reason for negative spread occur in ECN according to the matching principle. 3 seconds is too long enough for computer to handle. Does it happen in EBS ？
I was actually wondering this myself last night, I'd be interested in the answer.
The breaking of a wave cannot explain the whole sea.
I've seen it at MBT a few times but could never get in. Then a month ago or so, the USD/CHF went negative for about 20 seconds. As fast as I could buy and sell, I could make money. I did 4 trades before it stopped and made a nice profit. Not a lot, but pretty good for no effort at all. It was during NFP, I think.
MBTF offering Currenex?
Quoting good mind
negative spread occur in MBTF/CurrenEX platform ，sometimes it last for 3 seconds！！ But it never happen in IB! no reason for negative spread occur in ECN according to the matching principle. 3 seconds is too long enough for computer to handle. Does it happen in EBS ？
LOL. You thought IB was an ECN? That's funny. Wait. Yeah. Funny.
Quoting wannatradefx
LOL. You thought IB was an ECN? That's funny. Wait. Yeah. Funny.
So are you actually going to point us at some evidence for your statement?
The breaking of a wave cannot explain the whole sea.
Quoting steve930
I've seen it at MBT a few times but could never get in. Then a month ago or so, the USD/CHF went negative for about 20 seconds. As fast as I could buy and sell, I could make money. I did 4 trades before it stopped and made a nice profit. Not a lot, but pretty good for no effort at all. It was during NFP, I think.
You must be joking right? Negative pip spread on NFP??!
Quoting fxvoilaaa
You must be joking right? Negative pip spread on NFP??!
No, not joking. I'm pretty sure it was NFP, but could be wrong, I really don't remember. Everything was moving fast and I saw the negative spread, tried it with a micro lot to make sure I wouldn't get stuck and it worked. I went in with multiple lots a few times, think I did six trades all in all, just a matter of pressing the button to buy and then immediately selling and making profit.

I have seen it again, but not as long and could not get in.
Quoting good mind
negative spread occur in MBTF/CurrenEX platform ，sometimes it last for 3 seconds！！ But it never happen in IB! no reason for negative spread occur in ECN according to the matching principle. 3 seconds is too long enough for computer to handle. Does it happen in EBS ？
You often see inverse spreads ("negative spread") at true institutional brokers. I had a Currenex account once, and often saw inverse spreads. There, I was able to click on them no problem. I once made over $700 on EUR/AUD in a few seconds doing that; just hit buy-sell-buy-sell.

MBT has something in the platform that prevents trading on a negative spread, so you can't do it there. But you can at other brokers, like ones that offer Currenex for example..
Inverted spreads are very common on CNX, assuming you are with a broker with good liquidity and execution technology.

I highly doubt that any retail set-ups would show an inverted spread, and if they do, there's probably a 0% chance of getting executed and/or getting out of the trade when you want (most likely immediately ).
Negative spreads are common in ecn, but not in all ecn.
IB doesn't show the real spreads happening live on thei ecn, but it shows adjusted spread, in fact they are never below 0.5 and only moves in 0.5 increments.
It probably happened because they had excessive liquidity on one side, either internally on their aggregator, or a liquidity provider was looking to dump liquidity to exit a position in urgency. Negative spread usually occurs when theres some urgency to get out of a position. I don't recommend trading on negative spreads.
  • Post #13
  • Quote
  • Last Post: Feb 23, 2010 10:06am Feb 23, 2010 10:06am
Liquidity providers are not to happy about negative spreads...it's candy for co-lo'ed arb engines...

Quoting wannatradefx
LOL. You thought IB was an ECN? That's funny. Wait. Yeah. Funny.
There's close to no "real" ECN's in the otc forex world (by the standard definition) - they are almost all hybrids in some form or another. So what's your particular point about IB?
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