interactive broke moc order

B

bhartesh

hello everybody
I am beginners and have opened account in interactive brokers. I want to clarify moc order in momentum strategy.Suppose i have spy etf of total value in my account and now i want to sell spy etf and buy tlt etf at the close or very near to closing price.I will transmit two orders in the broker application one of selling the spy etf and other of buying tlt etf with moc remarks .I am in doubt that the broker first has to sell spy etf and only than it can buy tlt so will i be able to get moc price for both assets.please any body can explain this to me
 
If you have a margin account, what you want to do will work with just fine IB. Cash account will probably not work.

With Reg T you can have 2x leverage, and with Portfolio Margin you can get even higher, so there is no problem to buy the TLT before SPY is sold, assuming you use 100% (1x) of your account value in each (1x SPY +1x TLT = 2x).

In my experience with IB, the margin check for MOCs does not take into account other open orders. For any potential order, the order is allowed if the order execution together with the current holdings do not exceed your margin limit.
 
Send them a few seconds a part if they are market orders your sell order will definitely hit with liquidity if it hasn't dried up.
 
thank you for reply
My account with ib is cash account so i don't have the facility of margin.
can i use gat order to activate the buying order after a second or 2 seconds of selling order

please any body suggest the best solution of my problem
 
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I was thinking of using a conditional order. But I'm not sure whether you'll have enough flexibility in TWS to do that.
For example:
first order: sell entire SPY position
second order: buy TLT position, under the condition that the available cash is more than x USD.
or, second order: buy TLT position, under the condition that the SPY position size is zero.
 
The simpler the better: create a combination order (In TWS right click on the SPY line, select Combinations>Stock/Stock): Buy 2 SPY / Sell 5 TLT for instance.
One should bear in mind that this order is not guaranteed.
 
Robert Morse said:
Well, this should have been in the first post. You will need to wait 2 days for the first trade to clear to do the next trade. I suggest you apply for a margin account.
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As far as I know when we sell stocks we get the cash immediately but when we buy stocks we get stocks after t plus 2 days. Please correct me if I am wrong.i cant open margin international account as it is not allowed in my country I think combination order is the best bet for my case.please give your remarks.thanks in advance
 
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