You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
IB - penny option pricing *now*
- Thread starter gaj
- Start date
Quote from Option Trader:
I mean exactly what I said.
IB's rates are $.75 for smart route, and $1.50 for direct routing. IB has had that function already a long time that you can enter a price improvement auction via BOX, only you then pay the direct routing rate of $1.50.
In this penny option innovation, my understanding is that since you are using smart route and not direct route, and it can go either to BOX or ISE, that's IB's business, and you get charged only $.75, but that is not what happens--rather $1.50 is the rate on each side of the trade, totalling $3 (aside from the penny or more you give up on the buy and sell side of the trade).
P.s. I will PM you the audit trail.
Not true. You get charged $0.75 per contract if you used a smart order. Why do you think we charge you $1.50? Is that just a guess, or you see it on the statement?
EDIT: please send your account # to the help@interactivebrokers.com and include mg101 in the subject line; we will check your charges immediately; thanks
When both trades went through that was the charge shown on both "Trades" and on "Account" where it shows the portfolio and p/l for the day.
Sent follow-up email with account number.
Sent follow-up email with account number.
Quote from Option Trader:
When both trades went through that was the charge shown on both "Trades" and on "Account" where it shows the portfolio and p/l for the day.
Sent follow-up email with account number.
Today in your account we see two trades:
- bought 37 contracts for 0.37 paid $18.50 in commission
- bought 24 contracts for 0.06 paid $12.00 in commission
The charges seem correct based on the sliding scale for smart routed options. I don't see any $1.50.
I suggest you wait a few hours for the statement and then let us know what it says.
The info you show above is incorrect. We just sent you an email with the correct information.Quote from IBsoft:
Today in your account we see two trades:
- bought 37 contracts for 0.37 paid $18.50 in commission
- bought 24 contracts for 0.06 paid $12.00 in commission
The charges seem correct based on the sliding scale for smart routed options. I don't see any $1.50.
I suggest you wait a few hours for the statement and then let us know what it says.
P.s. I am next available (on my end) to follow-up on Sunday or Monday.
Quote from Option Trader:
The info you show above is incorrect. We just sent you an email with the correct information.
P.s. I am next available (on my end) to follow-up on Sunday or Monday.
Thank you for your email. You are right; I mistyped in the previous post. My post should have read:
- bought 37 contracts for 0.07 paid 18.50 in commission
- bought 24 contracts for 0.06 paid 12.00 in commission
Now to your email:
- the commission is 50c instead of the 75c because the premium is below 10c in both cases (please refer to the website for more details)
- the average price on the statement is the average price of all the buy/sell trades done in the symbol on the day
- we checked the first trade and found that due to an error we indeed filled you at 0.07 cents when we should have at 0.06; we have corrected that - you should be able to see the adjustment on Friday's statement; we also reviewed all the executions from this week in order to find whether any other fills were effected; we found one more and adjusted it accordingly; we also corrected the responsible software error
- as to the other fill at 0.06, we indeed filled you at 0.06 and not at 0.05 as you asserted in the email
I hope it now all makes sense now. Thank you for reporting the problem.
I still want to only place orders as before, in nickels or dimes until the exchanges roll it out. However, even when I remove penny options using the feature selector, the pull down pricing for options is still in pennies, so it takes me too long to get to my price. Is there any way to get rid of that?
Oh my GOD !Quote from arl:
I still want to only place orders as before, in nickels or dimes until the exchanges roll it out. However, even when I remove penny options using the feature selector, the pull down pricing for options is still in pennies, so it takes me too long to get to my price. Is there any way to get rid of that?