Just wanted to give a heads up to all who are considering autotrading Options Xpress with an options trading system.
When you set up the autotrade settings through C2 you get more than one warning- to put the warning in plain english it basically says:
Limit orders are not limit orders. If a C2 system issues a buy limit entry for $3.00 -> it will not set up a limit order with OX for a buy at $3.00. INSTEAD it will wait for the $3.00 to be traded through and when it does- THATS when it gets triggered it as a MARKET ORDER.
Now if you are autotrading a stock system- that isn’t too bad. But if you are trading an options system- forget about it.
So lets say a C2 vendor issues a signal to buy a put at $3.00- instead of getting the fill at $3.00 you will get the “ask” price which depending on the option traded could be 3.05 or 3.15, or 3.5 - you get the picture.
So autotrading with OX only works if an options vendor only issues market orders— which those of you who trade options regularly know that you will get killed due to the spreads on options.
Matthew is working on getting this fixed in the future… but till it gets fixed- I would HIGHLY recommend not using OX.
