NewTradeOrderRequestDTO Properties

[Vincent 11]

Hi,

 

There are some properties in NewTradeOrderRequestDTO I am not sure about its purpose.

 

http://docs.labs.cityindex.com/#Data%20Types/NewTradeOrderRequestDTO.htm

 

Those properties are:

 

"QuoteId"

"PositionMethodId"

 

Thanks.

[Physicsman 25]

Hi Vincent,

 

PositionMethodId is used to control whether the new trade is in FIFO or non-FIFO (also known as Hedging) mode.

 

PositionMethodId == 1 == FIFO

PositionMethodId == 2 == Non-FIFO (Hedging).

 

FIFO Mode

When in FIFO mode, a new equal sized opposing trade will offset (close) an existing trade in that market. Take the following example:

You have one existing trade in GBP/USD: a 10,000 Buy position.

When you open a new Sell trade of 10,000 in GBP/USD, this offsets the existing position leaving you flat with no open position in GBP/USD.

 

Non-FIFO (Hedging) Mode

When in non-FIFO (Hedging) mode, each new trade in a market does not affect or offset any existing open trades but instead opens a new trade. You can therefore have simultaneous multiple Buy and Sell positions in the same market. Take the following example:

You have one existing trade in EUR/USD: a 10,000 Buy position.

A second Sell trade of 10,000 is opened in EUR/USD. This results in two open trades of size 10,000 - one Buy and one Sell.

A third trade is opened: a 20,000 Buy position, leaving you with three open trades: a Buy position of size 10,000; a separate Buy position of size 20,000 and a Sell position of 10,000.

 

 

If a trade/order results in a quote being generated, for example if the trade is referred to dealer or because the order is oversize, a QuoteId is passed in the response. You'll then need to use the QuoteID to place the trade based on the re-quoted price. You can leave QuoteId as null in all other cases.