Posted: Mar 07, 2013 @ 09:54 PM             Msg. 1 of 7

When using the OEC Trader Demo to place options orders, if I send a LMT option order using a half-tick increment (where dividing the user-assigned premium by full tick amount would produce a non-zero remainder), the order is rejected with an invalid tick msg for these symbols:
OGF - Cattle, Feeder options (GF)
OLE - Cattle, Live options (LE)
OHE - Lean Hogs options (HE)
O_LBS - Lumber options (LBS)

In the OEC Trader Demo, the half tick for OGF rounds to nearest digit: instead of 2.0125, it gives 2.013. that could explain the invalid tick for that symbol.

But for the other symbols, I don't know why the half-tick is given if it cannot be used. The rulebooks for these syms seems to indicate that the half-tick should succeed if used as discussed above when placing options limit orders.

Is there a case that I'm missing where the half-tick can be used for these symbols? I'm using a demo account for this testing.

Thanks,
CHW

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CHW
Edited by CWeber984 on Mar 7, 2013 at 21:57:31
Edited by CWeber984 on Mar 7, 2013 at 21:57:57

Posted: Mar 08, 2013 @ 09:29 AM             Msg. 2 of 7

We've fixed price format for OGF options to show 4 decimals.

Our customer service can help you with question about trading with half-ticks better.

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Victor Vins
Lead Software Developer

Posted: Mar 11, 2013 @ 02:52 PM             Msg. 3 of 7

Trading half-tick is only allowed when the contract is trading cabinet, ie. below 2.5 cents. So, in most cases, options trade in 2.5 cent increments.

Our simulator engine may not allow half-tick trading and reject order due to inability to simulate order.

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Chris M

Posted: Mar 13, 2013 @ 07:15 PM             Msg. 4 of 7

Thanks Chris M. Tested for this info by placing LMT options orders in OEC Trader Demo for these symbols:

- OGF - placed at .0125, rejected at .0375 (over .025)
- OLE - placed at .0125, rejected at .0375 (over .025)
- OHE - placed at .0125, rejected at .0375 (over .025)
- O_LBS - placed at .05, rejected at .15 and .25
- it placed using its half-tick at the premium of .05
- though this is over the .025 limit
- LMT orders with any premium over .05 could not use half tick of .05 (using full tick always successfully places)

It seems that for O_LBS, the .025 threshold for using the half-tick does not apply, but .05.

Is there any documentation available for looking up the premium threshold for cabinet trades, i.e., when the premium is low enough to use the half-tick for a cabinet trade? I was not able to find this in the symbol rule books or in OEC.

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CHW

Posted: Mar 13, 2013 @ 07:18 PM             Msg. 5 of 7

Chris,

Per your rejected messages, this would mean my statement was true:
Our simulator engine may not allow half-tick trading and reject order due to inability to simulate order.

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Chris M

Posted: Mar 14, 2013 @ 02:35 PM             Msg. 6 of 7

I interpreted the rejections as occurring because I was placing orders at a premium that was above the threshold at which I could use the half tick.

If I attempted to place an options order using a premium greater than .025, (2.5 cents), I shouldn't be able to use the half tick for placing options orders for OGF, OLE, and OHE. That was what occurred.

If I attempted to place an options order using a premium less than .025, (2.5 cents), I should be able to use the half tick for placing options orders for OGF, OLE, and OHE. That was what occurred.

Thanks for your help here.

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CHW