IB - Stop market order triggered not executed

T

TiC

Hi, thank you for reading my question.

I have a short position at IB, and submitted a STP market order with trigger at $10. Current price was $8. During the volatile day the price jumped from $9 to $12 within minutes. I could see the stop market cover order turned from dark blue to purple (triggered) on IB, but never executed at any price. Just wondering if anyone has similar experience? The stock is a liquid US stock which trades $500mn+ a day. All the settings on IB are default (Smart), with overfill protection disabled. Still waiting IB's reply.

To prevent this in the future, I am thinking the below, but not sure if they would be any better:

- Choose IEX instead of Smart for the STP order
- Enter algo (e.g. adaptive / Guerrilla, urgent) and add a condition (e.g. stock bid/ask reaches $10) to trigger, instead of using STP

Any comments would be most welcome! Thanks!
 
TiC said:
Hi, thank you for reading my question.

I have a short position at IB, and submitted a STP market order with trigger at $10. Current price was $8. During the volatile day the price jumped from $9 to $12 within minutes. I could see the stop market cover order turned from dark blue to purple (triggered) on IB, but never executed at any price. Just wondering if anyone has similar experience? The stock is a liquid US stock which trades $500mn+ a day. All the settings on IB are default (Smart), with overfill protection disabled. Still waiting IB's reply.

To prevent this in the future, I am thinking the below, but not sure if they would be any better:

- Choose IEX instead of Smart for the STP order
- Enter algo (e.g. adaptive / Guerrilla, urgent) and add a condition (e.g. stock bid/ask reaches $10) to trigger, instead of using STP

Any comments would be most welcome! Thanks!
More...
I think before you make any changes, you should create a ticket at IB and ask why the STOP was triggered but you received no fill. Then you can decide what to do differently next time. We use EDGX as those STOP orders are serverside at the exchange vs being held by your software or your broker.
 
TiC said:
Hi, thank you for reading my question.

I have a short position at IB, and submitted a STP market order with trigger at $10. Current price was $8. During the volatile day the price jumped from $9 to $12 within minutes. I could see the stop market cover order turned from dark blue to purple (triggered) on IB, but never executed at any price. Just wondering if anyone has similar experience? The stock is a liquid US stock which trades $500mn+ a day. All the settings on IB are default (Smart), with overfill protection disabled. Still waiting IB's reply.

To prevent this in the future, I am thinking the below, but not sure if they would be any better:

- Choose IEX instead of Smart for the STP order
- Enter algo (e.g. adaptive / Guerrilla, urgent) and add a condition (e.g. stock bid/ask reaches $10) to trigger, instead of using STP

Any comments would be most welcome! Thanks!
More...

Definitely follow through and sounds like you should be compensated for some losses if the order simply did not execute. The order should turn green to indicate it was transmitted to an exchange.
I've had similar issues before multiple times where orders remain in the purple stage and never reach the exchange.
 
Probably IB's crappy servers crapping up again, I was being forced logged out at 930est/1600est daily 2 weeks ago and my orders/cancellations were consistently being held (light blue status) and sent to the exchange only much later (up to 2 minutes sometimes) when markets started to move quickly, things got real bad last Friday and as a consequence I suffered a hefty 4% DD. I'm now done with IB, its just not worth it anymore.

P.S I don't think they are going to compensate you, pretty sure they have their asses covered when you signed up.
 
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