IB: Several seconds after cancelling an order...

Quote from Option Trader:

Can you elaborate.
We are retail, and sold a stock for about 2-3 times the market value once, and the trade was busted against us without asking us.
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The key words "OUTSIDE OF THE NO BUST RANGE". I urge you to familiarize yourself with the various trade bust rules of the exchanges. If outside the range, trades will be automatically busted or on some exchanges, price adjusted.
 
"Out of the range" seemingly is all relative. The Black Scholes value of the 60 calls, noting they were way out of the money, and noting the 50 calls (or less) could have been bought for the same $.05 is probably $.01. I.e. five times as much the was paid. I don't understand why that does not qualify for an automatic trade bust.
 
Quote from Option Trader:

"Out of the range" seemingly is all relative. The Black Scholes value of the 60 calls, noting they were way out of the money, and noting the 50 calls (or less) could have been bought for the same $.05 is probably $.01. I.e. five times as much the was paid. I don't understand why that does not qualify for an automatic trade bust.
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if you were to make a market in that option, what market would you make? You certainly wouldn't be 0 bid at .01 for unlimited size? there has to be a certain degree of finality in a trade. If you make what you think is a reasonable offer, you can't be hanging around wondering if a trade will be busted. Sure B&S values that option as worthless. However, I still wouldn't sell it at a penny - simple risk/reward. This is why many exchanges will not bust trades if they are within the legal bid/ask spread required by market makers.
 
Quote from Option Trader:

"Out of the range" seemingly is all relative. The Black Scholes value of the 60 calls, noting they were way out of the money, and noting the 50 calls (or less) could have been bought for the same $.05 is probably $.01. I.e. five times as much the was paid. I don't understand why that does not qualify for an automatic trade bust.
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The Black-Scholes value is only theoretical (and wrong).
The market value is what counts.
 
Quote from BCE:

I've had problems the last 2 weeks with orders I thought were filled, shorts specifically, and weren't. The BookTrader showed them as filled and then suddenly they weren't. I thought I had covered the shorts a few seconds later for quick scalps of .30 and .50 trading ER2. But instead just the buys went through and I was long and ended up losing 1.10 points one time and then a week later 1.20 points. Didn't work for me. I may start a thread explaining just what happened. I think in my case it's a data feed problem with IB's servers. I think the BookTrader saw someone buying at the price I thought I shorted at and thus the line went black indicating a fill. But in the real world maybe the price had already moved away from that so no one was there to buy. Something like that.
BTW thanks for mentioning the Audit Trail feature which I didn't know about.
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I am amazed how someone always talks as if he is an experienced trader and knows what he is talking about, and yet doesn't even know about the audit trail ?!?!?
 
Quote from newbbee:

I am amazed how someone always talks as if he is an experienced trader and knows what he is talking about, and yet didn't even know about the audit trail ?!?!?
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Though, honestly, being an experienced trader and being experienced with IB's TWS are two seperate things. They should not be thought of as being connected.

Being an experienced trader and not knowing the vagaries of the instrument you're trading as well as exchange rules would be...

amazing.
 
Quote from ddunbar:

Being an experienced trader and not knowing the vagaries of the instrument you're trading as well as exchange rules would be...

amazing.
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Quite common.
 
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