Posts: 1,036 since May 2012
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So after contacting IB I was told that the reason for the incorrect figures is that the performance profile ignores the limit price you have entered and simply calculates everything based on entering 'at market'.
This is really stupid in my opinion and really not difficult to correct if IB wanted to. The IB support guy said this issue has been raised before and passed on to the developers but nothing has been done. Apparently the fact that this makes the performance profile just about useless is not important to them. The wider the spread, the more useless this tool becomes. Since options are often not very liquid, having this tool perform all of it's calculations based on entering at market is really stupid.
Anyway, now I know the reason.
Diversification is the only free lunch |
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