I would say that brokers value what they judge to be a long term business relationship, just like
any other business. Clients of any business often negotiate preferred terms, based upon a “win-win”
relationship which exists. Brokerage are no different.
In my case, I use Limit orders and only secondarily, Market orders. But one of the trading “modes”
is a short term “scalping” mode. In that case, multiple price entries are used to establish a VWAP
position, so there might be a dozen orders filled, and others unfilled. There comes a point where we
want to CLOSE them all. IN THAT CASE, speed is important because a close is a “market” type of
order, implicitly.
In such an “aggregate” position, I am not interested in Profit/Loss of individual positions. What matters
is the VWAP (volume weighted average price) profit of the “order group”. Ignoring for a moment, when
we “scale out” incrementally, most of the time, we want to get out “now” and, as I said, this means the
closure/cancellation of a dozen or more individual “sub positions”.
My software is custom written over the NJ4X.com framework, which is Java over an API into Standard MT4
terminal “pools” which actually perform the Order Entry operations. So one terminal.exe process is
dedicated to incoming Market Data, and 2 or 3 or more processes are dedicated to Order Execution.
If I have a dozen positions to close, and MT4 is not Asynchronous in its order operation, then this
method gives us an accelerated “parallel” Order capability. Instead of closing 12 positions, one at a
time, we can use 3 terminal.exe servers (all into the same account) which are able to close that
position 3 times faster, than a single terminal alone, because they work concurrently. This is the
main reason why latency is important to me, but it is not the only criterion.
Because the software initiates orders over the NJ4X framework using multiple Java threads, each
thread is able to report when it started, and finished each order operation.
Hope that was an “intelligent” enough explanation, but certain business relationships, discounts,
and other preferential treatment a client might receive, are best kept confidential. As I said before,
if you go to any broker with what appears to be a substantial business opportunity, then you will
always be able to negotiate some preferential arrangements as the relationship develops…
hyperscalper