MB Trading Futures - Introduction

lol, NFA surely always make us confused on things like FIFO Leverage Hedging...

J is that No mean "Yes"?

Read back through the last 8 pages of this same thread. We've all been discussing it since it was announced. All of your questions will be answered.

apart from that last encouraging news from mbt I still wait for a truly big one, i.e.: inverted spread forever

For everyone joining the discussion now and trying to catch up.

What is “Pay for Limits”?
MB Trading will pay 1.95 per 100,000 in currency executed for Forex Limit orders posted that add liquidity to its FOREX ECN. This applies to every non-marketable Limit order that you place that gets filled.

What defines a “non-marketable” order?
Non-marketable refers to a an order which is not immediately executable and rests on the internal limit order book for some period of time, thus adding liquidity when another order of equal or greater value fills with the resting order.

Do I get charged the normal retail rate of 2.95 per 100k and then receive the Credit?
No. You only pay us 2.95 per 100k for marketable orders. You only get paid 1.95 per 100k for non-marketable Limit orders. There is no fee and then a credit for Limit orders, it is just the credit.

What about Stop Limit orders?
A Stop Limit where the stop is one price and the limit is set just beyond that to control slippage is a “marketable” order which would not qualify for the Pay for Limits scenario.

What Platforms does this apply to?
This applies to any platform or front-end connected to the MBT Forex ECN including MetaTrader4 and the Desktop Pro.

Is a Take Profit on Metatrader 4 considered a Limit order?
Yes.

Does the Take Profit part of the TTO on Desktop considered a Limit order?
No, with a TTO order the server holds until either price is hit and then fires market order. Therefore, this order type is not credited.

Do I get paid both ways in the trade if I use Limit orders?
Yes, if you entered with a Pending Limit and then have a Take Profit, you would get paid both ways.

Does it matter if it is a partial fill?
Partial or not doesn’t matter. The only thing that matters is whether you posted a Limit order up. Any piece or total of that order that gets filled, you get paid.

Is there a limit on how many rebates someone can receive?
No, there is no limit to how many credits at this time. However, due to higher cost of business in China, “Get Paid for Limit Orders” is not available for Chinese residents. All Chinese residents have a fee of 2.95 per base currency for all order types.

How much is rebated/credited for non USD based pairs such as the EUR/USD, GBP/USD, NZD/USD, AUD/USD, etc….?
In these cases you would calculate the amount from the base currency. For example:
EUR/USD current rate 1.35
100K traded
1.95 x 1.35 = 2.63 credit

Where can I see an example of how this works?
You can view a video of Pay for Limits at this location: VIDEO

1/30/2011 8:00:00 PM

Weekly Upcoming Economic Event Review

Market Education

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Weekly Upcoming Economic Event Review. In preparation of the trading week ahead, llian Yotov from allthingsforex.com will explore how the upcoming week’s important economic data could impact the USD, the EUR and other currency majors. This webinar series will be held each Sunday at 8:00pm EST.

1/31/2011 12:00:00 PM

Desktop Pro: Options Training

Training

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This webinar will go over the functionality of the MBT Desktop Pro for Options. The topics will include set up, overall features, preferences, order entry, and a question and answer session. We look forward to your attendance at this event!

2/1/2011 7:00:00 PM

MBT Desktop Pro: Basic Forex

Training

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7pm London / 8pm Paris. This webinar will go over the basic functionality of the MBT Desktop Pro for Forex. The topics will include set up, overall features, preferences, basic order entry, and a question and answer session. We look forward to your attendance at this event!

2/2/2011 7:00:00 PM

MBT Desktop Pro: Advanced Forex

Training

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7pm London / 8pm Paris. This webinar will train you on the advanced features of the MBT Desktop Pro in regard to Forex. The topics will include advanced preferences, advanced order entry, and charting options. It will be followed by a question and answer session. We look forward to seeing you at this event!

2/3/2011 7:00:00 PM

A Closer Look at “Pay for Limits”

Training

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Join us for an upcoming webinar that takes a closer look at what it means to "Get Paid for Limit Orders". Topics will include understanding and using limit orders, how getting paid for your limit works and the multiple scenarios it may apply in and the overall savings and benefits of using limit orders while trading.

Justin, with all due respect, I think this is a shortcoming of your platform, one that cries out for improvement.

For myself, I always want my Take Profit order to be a true Limit Order. If the market touches my take-profit point, and then drops, I don't want to be filled at the lower price, beyond my control. I'd much rather wait to see if I get another chance at a fill at my target -- or else exit lower at my discretion, based on my market read.

Now, with your 'pay for limits' policy, the advantage of using a true limit order for TP is even more compelling - obviously. But I never want to trade without some kind of stop-loss in the market. Which means I need, for every trade:

1) A stop loss market order, for risk protection,
2) a limit order, for taking profit,
3) and absolute assurance that, when one of these orders executes, the other one will be cancelled, before an unwanted new trade is triggered.

I don't think I'm unusual in this regard, I think lots and lots of traders want to trade this way! Which makes it even more surprising to me that, with 30-some native order types on your system, this very common and popular way of trading is not natively supported.

So, please consider this an enhancement request :-),

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Look Deeper...

The offsetting take profit limit order should be non-marketable, especially considering the FIFO in the USA. But then again, in forex market retail most of the time, the commission is charged on the entry, not the exit of a position. This is a very interesting revelation that the TP limit order is not an actual order that is readily visible on level II liquidity.

In futures, you pay 1/2 the round turn commission when you enter, and the other 1/2 when you exit.

Now if they were to do it 1/2 and 1/2 like in futures, then i could see your point. This is not the case. 100% of the commission is charged when you enter. If they were to do what you suggest, they would have to revamp their entire commission structure. Charge 1.48 on enter and 1.47 on exit. Or rebate .98 on entry and rebate .97 on exit (assuming both were non-marketable)

Interesting. This would definetly be another industry changer. What is MB's opinion of this suggestion? I think the taking of the whole commission up front is more benefitial to the broker and thus they would be very slow to want to change this.

This may be a lot easier to show in mt5. mt4 appears to be designed to take commissions one time.

Our MT4 platform already works like that. We will soon have OCO that will work like that in the Desktop platform.

That's great news. I knew about MT4, but for various reasons that's not the right platform for me. Looking forward to the improvement. It's nice to have a broker where the surprises are nice ones.
____________
Look Deeper...

ybj,

If you look closely at http://www.mbtrading.com/pricing.aspx under the "Savings" tab, it seems clear that MBT is charging or crediting the routing fee on each order, whether exit or entry. So this is already what you're calling "1/2 and 1/2."

That's what you call sod's law. Just after I extolled the virtues of MB, I now find that their markets are still not open 45 mins after the opening generally available elsewhere. They tell me its because of a lack of liquidity....

Still not accepting trades 1 hour after the FX open.....Hopeless....Placed the trades on my LMAX account....

yeah...I know...They said they have no liquidity problem...My ducascopy account just fine...luckily i have my backup......I really i can't adjust my SL in my account with MB

You've pretty much cut my commissions in half! Thanks for rocking the lowest spreads and payments ever.

I mostly use the MBT desktop platform, and I was wondering if you have any helpful suggestions on better analyzing my previous trades. thoughts?

Justin,
is the size 4 forex within the market depth window shown in 100k or 10k lots (desktop app.)?

if u c 100s both sides then it is 10k

roldreth,

Market Depth shows 10K.

Hello Justin, I was considering you but you only offer 50:1 I can't do 50:1! I need minimum 100:1, some of your competitors are offering 100:1 so the choise is easy, if you can give me 100:1 I will take your offer

and at the same time you have no dealing desk? :O can you please tell me how that add up!?

This is a revolutionary concept. It's called customer service.