Interactive Brokers Stop orders

C

Circle

Today, at 3.30 pm Eastern time, I had placed a buy stop limit order for the Russell 2000 futures contracct. It was a buy stop limit order with stop price 709.50, and limit price 709.50.

The market traded through my stops, at 3.36 pm, but IB failed to execute my stops.

The Time and Sales (at that time) printed trades at 709.40, and then 709.60. So there were no trades at 709.50. But IB's execution logic should have stopped me, correct?

Of course, I can always place a buy stop order, instead of a limit order, but I'd like to limit the slippage.
Can IB or anyone who has noticed these issues clarify what type of orders to place to ensure better fills, executions and control slippage.

Thanks.
 
Quote from Circle:

Today, at 3.30 pm Eastern time, I had placed a buy stop limit order for the Russell 2000 futures contracct. It was a buy stop limit order with stop price 709.50, and limit price 709.50.

The market traded through my stops, at 3.36 pm, but IB failed to execute my stops.

The Time and Sales (at that time) printed trades at 709.40, and then 709.60. So there were no trades at 709.50. But IB's execution logic should have stopped me, correct?

Of course, I can always place a buy stop order, instead of a limit order, but I'd like to limit the slippage.
Can IB or anyone who has noticed these issues clarify what type of orders to place to ensure better fills, executions and control slippage.

Thanks.
More...

A buy stop limit order becomes a limit order when the stop is triggered. Therefore, at 3:36 when the ER2 traded through your stop, you would have had a limit order to buy at 709.50. If the market then traded above 709.50, you would be unfilled.

The order you used "limits" slippage, but does not guarantee execution. If you want to guarantee execution, you would use a stop order, which becomes a market order when triggered. Of course then you may have some slippage depending on market conditions at the time.

There is no way to both guarantee execution AND execution price at the same time.

You could enter a stop limit with a bigger limit, for example, stop at 709.50, with a 710.00 limit. Here you give yourself a little room for execution.

The bottom line though is that if you want out, ie guarantee an execution, a limit order does not do it.

By the way, the lack of execution here has nothing to do with IB. It's a problem inherent in the type of order YOU selected. You might want to study the types of orders available to you, and contemplate their advantages/disadvantages.

OldTrader
 
Stop limit, you are limiting your slippage but if it trades through and keeps going, you're never gonna get filled. It'll happen every once in a while and it'll cost you. Better to take the slippage with a stop market order.
 
Circle,

You aren't ready to trade futures. You need to learn the basics of trading, like the differences between limits, stops, stop-limits, and how they are used and executed. You should limit your risks by trading small lots of stocks, until you become more knowledgeable and profitable.
 
Quote from Circle:

Today, at 3.30 pm Eastern time, I had placed a buy stop limit order for the Russell 2000 futures contracct. It was a buy stop limit order with stop price 709.50, and limit price 709.50.

The market traded through my stops, at 3.36 pm, but IB failed to execute my stops.

The Time and Sales (at that time) printed trades at 709.40, and then 709.60. So there were no trades at 709.50. But IB's execution logic should have stopped me, correct?

Of course, I can always place a buy stop order, instead of a limit order, but I'd like to limit the slippage.
Can IB or anyone who has noticed these issues clarify what type of orders to place to ensure better fills, executions and control slippage.

Thanks.
More...


Circ,

Think of a Stop limit as "I'd like to get out here but this is the most slippage I'm willing to bear."

Therefore, your stop limit should have been something like...

Stop limit 709.30, 709.5 stop. (assuming this is a sell to exit stop limit)

In all probability, you would have been executed @ 709.40 or 709.30.

Stop limits should never be equal to the stop price. They should at least be a tick apart. Best to make them wider because you have to remember that the stop limit becomes a limit order when then stop is triggered. And a limit order is the limit price... or better.

But one of the dangers of a stop limit is if price gap through your stop and limit as was the case you had there. If you trade liquid markets, straight stops (Stops, not stop limits) work fine and protect you against the occasional gap. Slippage is not a real concern in liquid electronic markets. With floor traded commodities it can be a very real concern.
 
Quote from Sanjuro:

Stop limit, you are limiting your slippage but if it trades through and keeps going, you're never gonna get filled. It'll happen every once in a while and it'll cost you. Better to take the slippage with a stop market order. [/QUOTE

True, but sometimes even that does not help. Two days ago I had a stop market order that did not get triggered (overnight markets--I was watching the screen as it happened).

Most of the time IB has done a standup job. But one has to be careful about "setting and forgetting" stop orders.
More...
 
Quote from smilingsynic:

Quote from Sanjuro:

Stop limit, you are limiting your slippage but if it trades through and keeps going, you're never gonna get filled. It'll happen every once in a while and it'll cost you. Better to take the slippage with a stop market order. [/QUOTE

True, but sometimes even that does not help. Two days ago I had a stop market order that did not get triggered (overnight markets--I was watching the screen as it happened).

Most of the time IB has done a standup job. But one has to be careful about "setting and forgetting" stop orders.
More...

What was your trigger method set to?
More...
 
Did you check the box for:
"Allow triggering outside of regular trading hours" under the Stop Trigger Method

I would listen to some of the other posters and learn all the orders and the trading platform before putting real money on the line.

Good Luck!
 
Hi folks,

thanks for the suggestions.

Jimrockford- if you read my post correctly- I know there is solution to the problem and alluded to a vanilla stop order to guarantee execution.
(Incidentally that trade ended up being profitable as I eventually got stopped into the market)

My question was specific to get order price improvements and guarantee fills. And addressed to those who may have had experience with IB's several exotic market order types. And the reason for bringing it up in this forum rather than emailing IB directly..

To clarify- I'm interested in 2 types of orders.

1) a "one cancels the other" order- wherein I can place a stop limit, and if stop price is touched and order is not filled, cancel the order immediately and convert to a market order.
2) Or alternatively- a stop limit order with a limit price that adjusts itself to prevaliing market conditions in order to guarantee fills.
I do not see this among the several order types in the IB platform. Although I could be wrong. Can the experienced ones elaborate please.

And the futures-ready folks, please save the "go read about trading" lecture. hardly worthwhile anyone's time here..
 
Quote from Circle:
And the futures-ready folks, please save the "go read about trading" lecture. hardly worthwhile anyone's time here..
More...
Ask a stupid question get a stupid answer.

You were wrong when you wrote:
The market traded through my stops, at 3.36 pm, but IB failed to execute my stops.

The Time and Sales (at that time) printed trades at 709.40, and then 709.60. So there were no trades at 709.50. But IB's execution logic should have stopped me, correct?
More...
IB didn't fail - they did exactly what you told them to do. If you don't want people to think you are a noob don't make noob-like statements.

Based on the scenario that you stated, if you were surprised that you weren't stopped out then the other posters are right - you have no business trading futures.
 
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