Why do I rarely see my order at opening bell? Is that the same with your broker, or that just with IB?
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Bid & ask at opening bell
- Thread starter Option Trader
- Start date
Quote from Option Trader:
Why do I rarely see my order at opening bell? Is that the same with your broker, or that just with IB?
I have the same problem with IB.
I find that some of my limit (I never use a market order. Never) orders are represented well before the opening. But, those are orders that are away from the market and are not expected to be filled.
IB obviously has some method for entering 'marketable' limit orders that protects the customer from receiving a bad fill. You should ask the broker for the details of their policy.
Mark
Quote from Option Trader:
Interesting concept, is this just an idea? Or have you heard this from a source?
I don't know for sure. But I do know that I have placed orders that do not appear on the screen until after the opening trades have been made. I have not asked why that is.
My first guess is that the opening bid-ask quotes are so wide that it's easy for one customer to sell at $5 when another is simultaneously paying $6. Obviously a limit order prevents all the problems associated with a market order, but I have no idea why IB does not send my order.
A reasonable explanation is that I choose SMART routing and there is no 'best' bid or offer until after the opening when bids and offers are made on each exchange. If a specific exchange were chosen (at a higher commission rate), then I believe the order would be represented on the opening at that one exchange only.
Mark
http://blog.mdwoptions.com/options_for_rookies/