Interactive Brokers Market Capping Question

R

rbartell

I just had the worst experience ever trying to trade with Interactive Brokers. I was trying to sell a stock after hours at the same price that it had just closed at. It wasn't executing even though someone was bidding at the same price as my offer, nor was my offer being shown in the market. I talked to the IB helpdesk and they said that there is a new rule that IB has instituted not allowing certain prices in wide markets. After 20 minutes of watching my offer sit unexecuted against a bid at the same price, and getting no real information as to why, the helpdesk guy actually said, "I want you to know that your order is active and IB is trying to get your price". I tried for about a half hour to get him to tell me under what circumstances that rule gets implemented. I got absolutely nothing out of him about the rule, and then he had the audacity to say the semantics of the rule aren't important and "On a more positive note, you are now aware that this rule exists".

Has anyone (especially IB traders) had experience/know information about this new rule? I've been trading for a few years and never run into such a thing (although he said it was new).

Thanks.
 
it's not 'new'. it's been around for years. what's new is that while ago IB changed something as usual without customer notification of any kind. i didn't checked the latest TWS version,but try 'precautionary settings' in TWS.

http://www.elitetrader.com/vb/showthread.php?s=&postid=3790355&highlight=cap#post3790355


http://www.elitetrader.com/vb/showthread.php?s=&postid=3741615&highlight=cap#post3741615


http://www.elitetrader.com/vb/showthread.php?s=&postid=3686196&highlight=cap#post3686196

and so on..
 
Quote from rbartell:

Has anyone (especially IB traders) had experience/know information about this new rule? I've been trading for a few years and never run into such a thing (although he said it was new).
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I've run into this problem and I agree with you. It's complete BS and IB refused to do anything about it no matter how much I complained. Fortunately, it only happens once in a blue moon for me, otherwise I would be forced to leave IB. But when it happens it is probably one of the most f**cking annoying things in the world.
 
Quote from Rodney King:

You're an active trader -- surely you have a backup broker to use when there are technical problems such as this at IB? :confused:
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No, and I don't feel I should have to split my purchasing power between two brokers, learn a second platform, work with a second set of API instructions, etc.
 
Quote from Rodney King:

You're an active trader -- surely you have a backup broker to use when there are technical problems such as this at IB? :confused:
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But it is not a technical problem. It is a policy decision made by IB so that in certain stituations you can't put in orders at the price you want to unless they deem it to be "acceptable." It is as if IB deems you too stupid to understand what your limit price means and is attempting to save you from yourself. But they end up limiting your opportunities by doing so, or cause you not to be able to exit positions in a timely fashion.
 
Quote from rbartell:

I just had the worst experience ever trying to trade with Interactive Brokers. I was trying to sell a stock after hours at the same price that it had just closed at. It wasn't executing even though someone was bidding at the same price as my offer, nor was my offer being shown in the market. I talked to the IB helpdesk and they said that there is a new rule that IB has instituted not allowing certain prices in wide markets. After 20 minutes of watching my offer sit unexecuted against a bid at the same price, and getting no real information as to why, the helpdesk guy actually said, "I want you to know that your order is active and IB is trying to get your price". I tried for about a half hour to get him to tell me under what circumstances that rule gets implemented. I got absolutely nothing out of him about the rule, and then he had the audacity to say the semantics of the rule aren't important and "On a more positive note, you are now aware that this rule exists".

Has anyone (especially IB traders) had experience/know information about this new rule? I've been trading for a few years and never run into such a thing (although he said it was new).

Thanks.
More...

IB instituted these limits because some regulators (especially those in Asia and Australia) are very strict about what orders we allow our customers to send into the market place.

When first implemented the limits had some growing pains. Since then a lot of work has been done to refine them and monitors (showing what is capped) are available to our operators, who can override the limits when needed.

Would you please PM me the order particulars so that I can look into it?
 
I had the exact same problem trading an IPO on its first day of trading. Had a 10,000 share position i was trying to sell, there was over 10k on the bid but my smart limit order wouldn't execute. Called IB and they told me it was due to their market capping rules.

Strangely, I haven't had a single issue since then. Care to disclose the ticker?
 
Quote from IBsoft:

IB instituted these limits because some regulators (especially those in Asia and Australia) are very strict about what orders we allow our customers to send into the market place.

When first implemented the limits had some growing pains. Since then a lot of work has been done to refine them and monitors (showing what is capped) are available to our operators, who can override the limits when needed.

Would you please PM me the order particulars so that I can look into it?
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then it should be tied to a customers trading permissions.i don't trade asia. i trade damn nasdaq and nyse.(and so OP) why do we have to struggle with it,if there isn't any rules about caping on exchanges we trade on?
 
Quote from Bob111:

then it should be tied to a customers trading permissions.i don't trade asia. i trade damn nasdaq and nyse.(and so OP) why do we have to struggle with it,if there isn't any rules about caping on exchanges we trade on?
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It is. The limits in the US for non-pinks and non-bbs are very wide; you should not be running into them. Can you PM me a recent case?
 
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