Interactive Brokers Stop orders

Quote from Circle:

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..
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1) why do u have to make it so complicated? If there is still a ask at the stop price after it is hit, you would of be filled at the stop price with a stop market order. If there is no more contracts available, cancelling your original stop limit and turning it into a market order gives you the same result as a stop market (at best, maybe a little bit of delayed with the OCO, that i am not sure).

2) Again, if you want to guarantee a fill, the only way to do it is with a market order.

So, in conclusion, why use a stop limit when you absolutely has to get out?

Hope it helps.
 
Quote from Circle:


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..
More...

1. To answer number one, OCO means literally when one order executes it cancels the other. While you could do that for price improvement, per se, both orders could go live. If both go live, you could end up having both execute before the system is able to cancel one of the OCO legs. A "too late to cancel" situation. Now instead of being out of the market, you reversed.

In this situation, providing that the market you are trading in is normally calm during the time you set the stop limit, a Stop limit is fine as long as you set the stop trigger price different from the limit price. Two or three ticks is fine for relatively calm markets.

2. Trailing stop limit.

http://www.interactivebrokers.com/en/trading/orders/trailingStopLimit.php?ib_entity=llc

But this is more or less the same as the stop limit with additional baggage.

Price improvement shouldn't be the goal when one is trying to limit a loss. The goal is to reduce the incidence of having to be stopped out. The stop should really be a fail safe. This is why I believe everyone keeps telling you to use straight "vanilla" stops. .10 to .20 is not really slippage. Not even .30. If you traded the Spooz(S&P Big) back a decade or more ago, slippage was measured in points. That was real slippage which affected the bottom line.

What's your risk/reward ratio that you're so concerned about a few dimes?
 
Quote from Circle:

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.
More...

There are no such orders as the two listed above.

1. You would have to manually program this with Excel DDE or API. But the time used by trying to execute the limit order and not being filled, then canceling and puting a market order may increase your slippage in a fast moving market.

You need to understand there is a trade off between execution speed and slippage. You don't want slippage, you risk not getting filled in fast moving market. You want immediate fills, you have to pay the spread and slippage.

Good Luck!
 
ddunbar, nasdaq,

Thanks a bunch. sincerely appreciate your constructive comments.

You are right, the OCO could potentially screw by reversing the position in the case of a stop- out order, or doubling the number of contracts in the case of a stop-in order.
As far as possible I'd like to save a few ticks by having a limit price the same as the stop price and during extremely volatile periods, have it expand the limit price. Making a few trades a day, those few ticks can add up to cost a whole point.

In any case, thanks for your thoughtful inputs.

Cheers.

ps:


winter-

you are exposing your own stupidity with your posts. If you bring yourself to answering any posts- try to improve the quality and understanding by making constructive replies. If you think a question a stupid, please ignore and concentrate on more interesting things.
No one has solicited your opinion on what business they should be in..
 
Quote from Circle:
you are exposing your own stupidity with your posts. If you bring yourself to answering any posts- try to improve the quality and understanding by making constructive replies. If you think a question a stupid, please ignore and concentrate on more interesting things.
More...
You're welcome.
 
Hi winter,

no offense. I just get put off with comments like- " you have no business trading", etc etc. I see quite a bit of it in ET. What do these really mean? I dont' know about you, but I trade because I like to and have a basic understanding of markets. (My confidence may not be warranted, that's a different issue).


Anyway, thanks all- for contributing.
Happy trading.

Cheers.
 
Hi,

Does Stop order works in Aftermarket? I use IB. Since it will become a market order once stop price is reached, my question is does it refer to only normal trading hours or it include after market hours as well? I tried to place a stop-loss order and unchecked "Regular trading hours only" on order ticket, but when price fall during the aftermarket, my stop price should have been reached, my order was not executed. Is it ture I only can place Stop-limit order in order for it to work in after market as well?

Anybody has experience with that please help. Thanks!
Ruby
 
Quote from rubyz:

Hi,

Does Stop order works in Aftermarket? I use IB. Since it will become a market order once stop price is reached, my question is does it refer to only normal trading hours or it include after market hours as well? I tried to place a stop-loss order and unchecked "Regular trading hours only" on order ticket, but when price fall during the aftermarket, my stop price should have been reached, my order was not executed. Is it ture I only can place Stop-limit order in order for it to work in after market as well?

Anybody has experience with that please help. Thanks!
Ruby
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What instrument/market were you trading? Globex?
 
Quote from OldTrader:

A buy stop limit order becomes a limit order when the stop is triggered.
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Hi OldTrader,

If a stock price opens above a buy stop limit order, will my order be placed immediately to the exchange?

Otherwise, would it only get sent if the price drops back to it?

Thanks, Sabia.
 
Nevermind, tested through the PaperTrader and found if the open is higher than my limit price, it will go straight through as my limit price.

I see these orders are colored green (ie: GREEN indicates that your order has been accepted and is working at the order destination).

Cheers Sabia
 
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