Interactive Brokers adds “Cash Quantity” feature for Forex orders

Interactive Brokers adds “Cash Quantity” feature for Forex orders

The system calculates the order quantity for Forex orders based on a monetary value that traders specify.

FinanceFeeds has been keeping its readers up to date with the latest developments and novelties on TWS, the proprietary trading platform of Interactive Brokers Group, Inc. (NASDAQ:IBKR). After talking of IBot, columns and scanners, as well as note-taking functionalities, it is high time to mention at least one new feature explicitly related to Forex trading.

The latest Beta version of the TWS platform offers traders to make use of a Cash Quantity feature for Forex Orders. Putting it simply, traders can have the system calculate the order quantity for Forex orders based on a monetary value that they set.

In order to use this “Cash Quantity” feature, users of the platform have to click the Quantity field in the Order Entry panel or on a Classic order line, and toggle the quantity from the default currency to the alternate currency. For instance, if the forex pair traded is EUR/USD, the default currency is EUR. When traders toggle to the alternate currency (USD), the value will default to the equivalent monetary value in line with the current exchange rate.

When the order is submitted, the system will attempt to buy or sell a quantity based on the amount traders want to spend/receive.

In addition, the platform applies a “Cash Quantity Estimate Factor” when calculating the order quantity and that is because the price may move before the order fills. This factor is set at 25% by default but traders can change it in the Size section of the Forex Preset in Global Configuration. What does the factor do? It increases the calculated order quantity in an attempt to achieve the desired monetary outcome if the price falls (for a buy order) or rises (for a sell order) by allowing more units to be bought or sold.

The current Beta version of TWS offers a number of interesting additions. The list includes new scanners and columns from AltaVista Research and Recognia, new capabilities for IBot, the text-based interface, and a useful Trader’s Journal.

#Cash Quantity, #Forex Orders, #Interactive Brokers

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