IB Limit Order Won't Execute

A

Actuarial_Fun

Hi. I tried to place a limit between the bid/ask of a pretty illiquid stock (~50000 shares traded a day) and the limit sat there and didn't get filled. I did the exact same thing (same pricer and same ticker) and it got filled immediately at Ameritrade in both my IRA and my taxable account (both Ameritrade).

It executed as market only as IB and under "Zero" exchange. Any thoughts on why this is happening? What does Zero exchange mean and have I not subscribed to the right data package? I should be able to receive a fill somewhere in between Bid/Ask on IB, if I can do so with Ameritrade.

Thanks.
 
For an order to execute, the buyer and seller must agree to the sell price whatever it is. There are times when the buyer refuses to meet the seller and vice versa. A lot of times I can have the lowest asked price trying to sell my stock or options and the buyer keeps lowering the bid price. No way in hell will I sell at very disadvantageous prices unless, I am desperate to get out at any price. So, in those cases, I just cancel my order. The asked price now is much higher and no sale is ever executed that those prices. Either the buyer has to be willing to pay more or the seller willing to take less. Without any price movement, no execution can take place.
 
Actuarial_Fun said:
Hi. I tried to place a limit between the bid/ask of a pretty illiquid stock (~50000 shares traded a day) and the limit sat there and didn't get filled. I did the exact same thing (same pricer and same ticker) and it got filled immediately at Ameritrade in both my IRA and my taxable account (both Ameritrade).

It executed as market only as IB and under "Zero" exchange. Any thoughts on why this is happening? What does Zero exchange mean and have I not subscribed to the right data package? I should be able to receive a fill somewhere in between Bid/Ask on IB, if I can do so with Ameritrade.

Thanks.
More...

I've read a few of your threads which are constant complaints but the reality is they point to your lack of knowledge of the markets.

Your other thread about the inability to cancel a market on open order within the 2 minutes prior to 9:30 w/o checking the rules is one and this one stating you don't have market data, place a bid LOWER than the offer and expecting to get filled is frankly a ridiculous complaint and completely misleading.

My guess is you are using IBKR LITE where order flow is sold where those getting zero commission may not be getting the best price as those orders are in the hands of HFTs vs IBKR PRO where Smart Routing will seek best price, re-route orders etc. Details can be found on the 606 reports brokers post to their websites.

Back to your "complaint"
When was the last time you walked into a super market, picked up a steak that was selling at $10, went to the register and said, I am only willing to pay $9 and the cashier says "sold".

IB's tools are much more sophisticated than what you are used to and I believe you have much to to learn about how the market works. A good place to start is our Trader's Academy where there are a number of excellent videos and lesson on the usage of our software and general information on the markets.

Traders' Academy
Traders’ Academy helps traders, investors, educators and students improve their understanding of the products, markets, currencies and tools available via IBKR’s award-winning Trader Workstation (TWS), IBKR Mobile, Client Portal and TWS API applications.

Our complimentary courses use a syllabus to define instructional goals and objectives, are delivered using a blend of lessons, videos and notes, and use quizzes to benchmark progress.
https://www.interactivebrokers.com.hk/en/index.php?f=25243
 
for illiquid stocks, nobody in the market has shares to sell or no inventory.
Ameritrade is market maker for many stocks and sold you the shares rather than a non-customer.
your broker is also the market maker and sold his inventory to you for the commission.
the trade may not even go through the exchange and avoid exchange fees.

interactive brokers isn't a market maker for illiquid stocks. and there are not too many market makers for illiquid stocks. or none at all. some stocks especially in the pink sheets or OTC i don't see why anyone would trade 10,000 share at .0001/price which the value is only $100. It's some program they have or something. $100 is the commission they use to charge for stocks back in the 80's for a $2000 stock buy. commission was like at least $50 or like 10% or 5% much like buying bitcoins.
The business model of interactive brokers or the 'exchange's is now different with then HFT machines.
and with the recent negative pricing of oil. I think the exchange don't deny they manipulate the market for their own benefit. There is suddenly appears to be no shortage of storage for oil in less than 3weeks. These HFT are the new 'market makers' and control the ' market.' highly manipulated and as evidence has shown with the negative pricing and they say it's totally 'fair' and legal. the risk disclosure agreement of client and market participants. the risk is now fraud and market manipulation if you trading this market or investing in this 'bullshit market' or risk of market error. or market computer failure as with negative pricing etc. or sudden illiquidity. with market algos malfuctioning.
 
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retail investors used to pay $30 commission for a stock buy with $5000 value in the year 2000 or $60 round trip so the market maker would fill your order from inventory
 
def said:
place a bid LOWER than the offer and expecting to get filled is frankly a ridiculous complaint and completely misleading.

Back to your "complaint"
When was the last time you walked into a super market, picked up a steak that was selling at $10, went to the register and said, I am only willing to pay $9 and the cashier says "sold".

IB's tools are much more sophisticated than what you are used to and I believe you have much to to learn about how the market works.
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Not really misleading at all. Someone would just be required to read the post and be able to comprehend it. To the 2nd paragraph, that supermarket would be Ameritrade (back to point 1).

Yes, yes, be more condescending. Certainly the best way to gain customers. I guess I thought I was on a forum trying to learn about how the market works and could be free from trolling sponsors...but I stand corrected.

Given I asked a very legitimate question in this thread, your response and condescending attitude is totally out of line (not to mention a poor way to gain customers). Thankfully subsequent posts actually tried to help me understand what was happening. I did learn one thing from you though, IB DOES have customer service, you just have to ask a question on ET to speak with them.
 
def said:
My guess is you are using IBKR LITE where order flow is sold where those getting zero commission may not be getting the best price as those orders are in the hands of HFTs vs IBKR PRO where Smart Routing will seek best price, re-route orders etc. Details can be found on the 606 reports brokers post to their websites.
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This paragraph was helpful, thank you. My question as to what I may be doing wrong with IB was driven by the fact that I get excellent fills with futures trading at IB. The fills are so good, that I assumed there must be something I was missing with why my fill was not as good as Ameritrade's with a stock that has less than 50,000 shares traded a day (I've only traded stocks a few times on IB, usually I trade futures). My future fills are much better than Ameritrade. This is what drove the question. Perhaps it is because I am using IBKR LITE. I will look into the differences between LITE and PRO more deeply. Thank you.
 
Actuarial_Fun said:
Not really misleading at all. Someone would just be required to read the post and be able to comprehend it. To the 2nd paragraph, that supermarket would be Ameritrade (back to point 1).

Yes, yes, be more condescending. Certainly the best way to gain customers. I guess I thought I was on a forum trying to learn about how the market works and could be free from trolling sponsors...but I stand corrected.

Given I asked a very legitimate question in this thread, your response and condescending attitude is totally out of line (not to mention a poor way to gain customers). Thankfully subsequent posts actually tried to help me understand what was happening. I did learn one thing from you though, IB DOES have customer service, you just have to ask a question on ET to speak with them.
More...

Call me condescending if you will. That was not my intention but post after post with titles talking about bad fills or software issues which are not indeed bad fills or related to software are not helpful and should be corrected. You rec'd help from others pointing out the issues you were experiencing were due to lack of knowledge yet you continue to claim you are receiving bad fills.

So let's step back and start again. You placed an order mid-market. Sometimes you get filled sometimes you don't. Try that with a statistically significant sample size and we can then talk if you get filled quickly mid market and often via other platforms. If you used SmartRouting and IBPro I'm almost certain (based upon knowing what we do and independent audits) you'll receive better executions over time but something you'll have to try and determine on your own.
 
def said:
Call me condescending if you will. That was not my intention but post after post with titles talking about bad fills or software issues which are not indeed bad fills or related to software are not helpful and should be corrected.
More...

Please don't hijack a thread to speak about other threads and please stop projecting. Everything in my post is a fact and I am asking questions on a forum, which I understand is the point of the forum. I never said it was a bad fill. I said that since I can do it at Ameritrade I should be able to get a similar fill at IB, so essentially I must be missing something (hence the question). The potential conclusion is that I use LITE not PRO.

To the other thread, I had no problem cancelling my Ameritrade market order today and never had that issue ever in the past with any broker, yet I had it today with IB. Certainly worthy of a question. I'm not sure if it was within 2 minutes or not actually, and I don't really care. If I trade stocks at IB again I'll cancel it well in advance.

In my opinion your software ranges from highly tilting to somewhat clunky at best. It's my opinion. Given your company's future doesn't lie on my opinion, I think it's fine to just let me have it.

From my experience, your company has great futures execution, great commission prices, and great reports. I don't need to like everything about your company/software to trade there and neither does anyone else.
 
def said:
Call me condescending if you will. That was not my intention but post after post with titles talking about bad fills or software issues which are not indeed bad fills or related to software are not helpful and should be corrected. You rec'd help from others pointing out the issues you were experiencing were due to lack of knowledge yet you continue to claim you are receiving bad fills.

So let's step back and start again. You placed an order mid-market. Sometimes you get filled sometimes you don't. Try that with a statistically significant sample size and we can then talk if you get filled quickly mid market and often via other platforms. If you used SmartRouting and IBPro I'm almost certain (based upon knowing what we do and independent audits) you'll receive better executions over time but something you'll have to try and determine on your own.
More...

He's "almost certain," people. So back off. I have runs tests. The fill rate for non-marketable limit orders in stocks/ETFs is much better at TDA than using any SMART config at IB. You can filled at mid-tick routinely at TDA, vs. virtually never at IB Pro [unless you manually route a pegged to mid order].
 
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