Interactive Brokers Implements Price Caps

def said:
If active trading is taking place, the updates should take place very quickly. Do keep in mind these are frequently reviewed and while I can't say for certain w/o specific details of a stock movement, your experience would be different now.
More...

Thank you, def, for the reply.

As it happens, one of my orders was price-capped just today.

On Friday evening after market close, Acanthe Developpement (ACAN/SBF - Euronext Paris) announced positive news. Today (Monday) before the open, I entered a buy order with limit 54 cents, but was capped at 51 cents. The close on Friday was 49 cents, so IB capped me at just 4 percent away from the previous close. The price in the opening auction was 53 cents. To IB's credit, just one or two seconds after the opening auction, my order was filled at 54 cents meaning that the price capping was at least adjusted/ removed quickly.

--> Price caps do not work well for the first transaction of the day (opening auction etc) as they are based on the previous price.

--> Can you please further improve on the price capping algorithm by deactivating it for the opening period after a news event has taken place (press release, regulatory filing)? I am sure you already flag stocks with potential market moving news, as IB Group is also a market maker.

The other option would be to give us a dialog box to override the cap in TWS.

Thanks
 
Happened to me this morning. ASH closed at 122.33 and opened at 123.27. There was no apparent unusual trading in the stock and customer service was unable to explain why the order was capped at a price far below anywhere the stock had recently traded. And yes this caused me to lose money - just a few bucks in this case but still annoying esp with no explanation.

capped.png
 
  • Like
Reactions: d08
Deuteronomy_24_7 said:
Is that 26 shares? Maybe IB handles odd lots differently. What happens when you trade round lots?
More...
It makes no sense to handle odd lots differently in this context right? If they're protecting against some phantom regulatory menace it would apply equally to round and odd lots.
 
Not sure what "makes sense," but many brokers process odd lots and round lots differently. My understanding (which could be wrong) is that odd lot fills aren't held to NBBO.

Anyway, are you having the same capping issue with your round lot orders?
 
Looks like price capping is back even for far out limit orders. It used to be that these orders would go straight to the market whatever the price but not anymore.

I'm down $4k in minutes due to this as it submits an idiot order (visible limit at bid to the main market...). Might as well burn the money with this order cap.

Is there any way remaining to directly access the market. I don't care about getting a bad fill, as long as it's immediate.
 
d08 said:
Looks like price capping is back even for far out limit orders. It used to be that these orders would go straight to the market whatever the price but not anymore.

I'm down $4k in minutes due to this as it submits an idiot order (visible limit at bid to the main market...). Might as well burn the money with this order cap.

Is there any way remaining to directly access the market. I don't care about getting a bad fill, as long as it's immediate.
More...
Do you have a backup broker you can do an opposite order in to flatten yourself out until The Algorithm deems you worthy to enter an order again? Maybe could also enter an opposite position with a correlated asset using IB if you don't have the cash in another broker? Good luck.
 
Daal said:
This is good, it prevents from people selling PG at 1 cent when markets go haywire
More...

Is IMPOSSIBLE trade most OTC markets stocks (and most illiquid stocks from nasdaq) with interactive brokers because their price caps are very rigorous.

Some time ago I buyed a stock for 4. After some days the bid ask go to 5X7, but interactive brokers reject a order to sell the stock for 5 (last price is 5.1). Next day stock down to 3 and I lose money

Yes, is a good idea prevent people sell a 1000 dollars stock for 1 cent, but there are many stocks with larger spreads
 
JackRab said:
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.
More...

fortunately there is no price cap if you try buy stock below market price or sell above market price (yet). Some brokers like Schwab, Fidelity or Robinhood refuse a test order for buy facebook stocks for 1 cent or sell bank of america stock for 999.999
 
You must log in or register to reply here.
Back
Top