IB have a BIG problem - ignore ODD lots for quote a stock (and impose price caps)

[secic22935]

IB impose price caps to trade stocks, is a security measure, ok (5% limit)

But ib ignore price from odd lots

Stock X trades
100 - 15.000
99 - 16.000
97 - 17.000
90 - 18.000

If i try buy a stock for 18.000 IB will reject, because the ~last price~ is 15.000

 

[DaveV]

Odd lots do change the Last price.
Also, you can raise the 5% limit to whatever you want in the Settings.

 

[sprstpd]

Odd lots do change the Last price.
Also, you can raise the 5% limit to whatever you want in the Settings.

No you can't if we are talking about IB's price capping algorithm.

 

[ValeryN]

5% does not sounds like a universal limit on their server side as I routinely push orders thru with greater % LMT that this and not facing those problems.

Unless you are talking about a single instrument, their limits will be dynamic and depend on market volatility + few other things.

Try to contact their support, they are very helpful.

If you are seeing this problem on all instruments it is likely just a TWS setting.

 

[secic22935]

Odd lots do change the Last price.
Also, you can raise the 5% limit to whatever you want in the Settings.

from my experience IB ignore odd lots for stocks quotation

 

[DaveV]

from my experience IB ignore odd lots for stocks quotation

Sorry. Typo. I meant to say: Odd lots do NOT change the Last price.
And, not just with IB. NxCore and IQFeed also.

 

[Fain]

Most trading platforms will have the last trade be a board lot. IB is the same. Keep this in mind for stop orders placed as odd lots won't trigger it.

 

[secic22935]

Most trading platforms will have the last trade be a board lot. IB is the same. Keep this in mind for stop orders placed as odd lots won't trigger it.

the problem is - IB impose restrictive price caps and ignore odd lots.

ODD lots are very common for stocks with high prices.

for example
berkshire hathaway
first trade 9:40 - 100 stocks, 320.000
9:41 30 stocks 340.000
9:42 50 stocks 345.000
9:44 99 stocks - 360.000

From IB the price is 320.000 and broker forbid buy the stock for more than 325.000 (IB ignore the current bid ask and odd lots prices)

 

[Fain]

when i was working at a brokerage. We had to institute price caps to insure that the executions were in line with the market. Fat fingered trades and bids well higher than the ask were flagged.

I'd have to see their risk logic to know what the issue is. but I'm not buying Berkshire anytime soon.