Does anyone have a solution for avoiding or decreasing modification fees with IB?

Quote from syswizard:

Isn't that a bit risky with a fast-moving underlying ?
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Yes it has happened to me cases that both orders went through and sometimes I closed the second position with a little bit of profit or loss. I am always by my PC and watching my orders with 10 eyes so when the first order goes through, I go ahead and cancell the first order if it is not already cancelled by IB.
In trading many strange things happen. It has happened to me many times that I have bought/sold instead of selling/buying and then I realized that I made a mistake and then in a few minutes I closed that mistake position with a profit !!!
 
Quote from hajimow:

Yes it has happened to me cases that both orders went through and sometimes I closed the second position with a little bit of profit or loss. I am always by my PC and watching my orders with 10 eyes so when the first order goes through, I go ahead and cancell the first order if it is not already cancelled by IB.
In trading many strange things happen. It has happened to me many times that I have bought/sold instead of selling/buying and then I realized that I made a mistake and then in a few minutes I closed that mistake position with a profit !!!
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admit it that it is the mistakes that make you a profitable trader.:D
 
No offense guys but this wasnt meant to be an amateur thread.I trade with portfolio margin so i dont have any of those issues. I'm fully aware of how IB treats margin and luquidations. If you've traded with them long enough you should also know how they treat these issues when volatility goes through the roof. This was an actual question for people trading substantial size. Maxing out intraday isn't really how a professional trader gets wealthy and they WILL force your hand and liquidate your position if there's a spike and you're suddenly under water.
 
Quote from Gammahedge1:

No offense guys but this wasnt meant to be an amateur thread.I trade with portfolio margin so i dont have any of those issues. I'm fully aware of how IB treats margin and luquidations. If you've traded with them long enough you should also know how they treat these issues when volatility goes through the roof. This was an actual question for people trading substantial size. Maxing out intraday isn't really how a professional trader gets wealthy and they WILL force your hand and liquidate your position if there's a spike and you're suddenly under water.
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So I have a few questions:

What is the issue that you want to resolve? Trying to avoid cancellation fee? what kind of option trades do you do? Mostly long? spread? Like for my case, 95% of my trades are naked calls and puts. What does usually happen that you try to change your order? Does the price come towards your order price and you try to cancell it and put a lower price? The option runs away from you and you try to chase it? How much you have paid for "other fees" YTD?
About maxing out and that a professional trader should not do that, I hear you because a trader should have some ammunition in case but do you consider Livingstone a professional trader? If you read his book, he was almost 100% of the time maxing out when he was sure about a position.

I also have a portfolio margin account and I know it is very unpredictable. Without changing the value of your holdings, your margin change change drastically overnight.
 
Quote from Options12:

Marc, at which exchange did the .31 trade execute?
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It was the BATS exchange [and NASDAQOM, I think]

MAKO bid ask was .30 x .40, and
unless I wanted to sit on .30, and hope for a fill,
I could only put in an order at .35 [or hit .40]
I was able to put in an order at .31, which I did, and got filled.
The Commision was -0.05

I also got a fill with FB at .04, instead of .05, through NASDAQOM,
although the commission was high with this one [1.95 for 2 contracts!].
I believe FB was all nickles, in the past.

there seem to be others like this

marc
 
Quote from Kevin Schmit:

Do you understand what he is doing?

Hajinow is operating close to his margin limit. When his second order is filled, he no longer has the buying power to support the first order, so IB cancels it. Since the first order can not be reached without the second order being filled, it is not that risky.

This is a pretty well known trick with IB and option cancel fees. It has been mentioned on this board a number of times.
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Ah, I wasn't aware that he had hit his BP limit and that IB has that order cancellation logic built in. Very slick.
 
Quote from hajimow:


I also have a portfolio margin account and I know it is very unpredictable. Without changing the value of your holdings, your margin change change drastically overnight.
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I don't fully understand how that can happen other than IB changing the margin requirements based on volatility or their whim.
 
Quote from hajimow:

So I have a few questions:


About maxing out and that a professional trader should not do that, I hear you because a trader should have some ammunition in case but do you consider Livingstone a professional trader? If you read his book, he was almost 100% of the time maxing out when he was sure about a position.

I also have a portfolio margin account and I know it is very unpredictable. Without changing the value of your holdings, your margin change change drastically overnight.
More...

Well if you know about Jesse Livermores life, which Reminiscences of a Stock Operator is basesd on, you should also know that he blew up multiple times and finally committed suicided in the end. Funny side note (not really funny but macabre I guess) his final wife had been married five times before and all of her exes had committed suicide before she married Livermoore!! Guys I wasn't trying be rude, elitist or sound like an asshole in the least. I had a very specific question I was looking to get answered. There a 1000 different ways to make money in this game and I'm never going to tell anyone they're trading incorrectly IF they're profitable. OK I'm not going to get my answer so somebody start an interesting thread so we can all learn something on this damn thing
 
the cancellation fee really is an issue to me too. I want to switch to other firm for better fee.

some fixed fee firm actually has higher fee. so kind of stuck.

option needs frequent order change, some time a penny difference will let a winner become a loser.

I do not trade a lot, but my major butter and bread is in option. I hold overnight options, most highly speculative gamble on OTM (buy eith call or put, no other strategy), hope to gain big multipliers or lose it all.

since otm, very critical to in and out accurately, so the cancellention fee
 
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