Interactive Brokers Implements Price Caps

"Ultimately, price caps should only impact market orders"

It appears that IB wants to project you from outrageous fills on Market Orders that the opposing trader tries to get filled well beyond the bid/ask spread.




:)
 
So, market orders will only get filled if IB's tech team decides it will execute at a price you're going to like? That's like ordering a steak well-done, but the cook hands you a note saying he may only go to medium-well to protect your own interests, and that you'll find out when the entree arrives. No, thank you.
 
Shadetree42 said:
That's like ordering a steak well-done, but the cook hands you a note saying he may only go to medium-well to protect your own interests, and that you'll find out when the entree arrives.
More...

Anyone ordering a well-done steak needs to be protected from themselves. :p

The IB thing just sounds like price banding at the CME. Is it something else? Something new?

I bet that zerohedge made it sound like a nefarious trick on us poor retail guys (I didn't click their link).
 
Let's say you want to close a position with a MOC order in a name that had pre-open earnings. The stock could easily move 8-10% intraday. Will IB cap your order if you place it in the morning? It seems like they do, which is not good. I've seen LOC orders which are not insane result in the price-cap pop-up, by the way. Whatever they are doing, it needs to be more transparent.
 
They've done this for years, and not just limited to market orders. Try trading something like wheat futures with them, you're order will be held sometimes even if it's inside the bid/ask!
 
Sig said:
They've done this for years, and not just limited to market orders. Try trading something like wheat futures with them, you're order will be held sometimes even if it's inside the bid/ask!
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What? I thought all orders are resting on the exchange. There are the rules of the exchanges, now there are additional IB rules.

Has IB offer more explanation?
 
surf'n trade said:
What? I thought all orders are resting on the exchange. There are the rules of the exchanges, now there are additional IB rules.

Has IB offer more explanation?
More...

They've had price caps as long as I've been trading with them... 10+ years... Doesn't have anything to do with the exchange, they basically reject the order if it doesn't fit their params. Which are debatable IMO, I've had several times when I couldn't place an order very close to the best bid/ask.

@IB-AN , maybe you can elaborate on this story/thread? Thanks.
 
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