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Issue Trading NDX Options with IB
- Thread starter uptickk
- Start date
Quote from uptickk:
When I enter NDX option sub nickel limit orders (i.e. 0.47) using IB, my orders keep getting rejected. Anyone else have this issue? I know NDX options trade in pennies so I am not sure what the issue is.
Thanks
NDX options trade in nickel not penny increments below $3 and dime increments above $3.
See the CBOE websie here
http://www.cboe.com/Products/indexopts/ndx_spec.aspx
Quote from FSU:
NDX options trade in nickel not penny increments below $3 and dime increments above $3.
See the CBOE websie here
http://www.cboe.com/Products/indexopts/ndx_spec.aspx
Thanks for pointing this out FSU. What is strange is that I get executed on penny increments using TOS. How is this possible?
Quote from FSU:
Are you getting spread legs filled where the individual legs are filled in pennies or are you getting single orders filled in pennies?
I am getting spread legs filled where the individual legs are filled in pennies. Example I put in a .77 limit order and the short was filled at 1.88 and the long at 1.11.
Quote from uptickk:
I am getting spread legs filled where the individual legs are filled in pennies. Example I put in a .77 limit order and the short was filled at 1.88 and the long at 1.11.
Their are different rules for the different indexes, but apparently spreads can trade in penny increments (I see a number of spreads in the COB offered and bid in pennies) in the NDX even though the individual options cant. I do not trade the NDX.
Some other examples are:
OEX/XEO and SPX no penny trades for options or spreads, but the legs can fill at penny prices for a spread as long as they total to nickel increments.
VIX no penny trades for options, but spreads can trade in pennies.
Quote from FSU:
Their are different rules for the different indexes, but apparently spreads can trade in penny increments (I see a number of spreads in the COB offered and bid in pennies) in the NDX even though the individual options cant. I do not trade the NDX.
Some other examples are:
OEX/XEO and SPX no penny trades for options or spreads, but the legs can fill at penny prices for a spread as long as they total to nickel increments.
VIX no penny trades for options, but spreads can trade in pennies.
Thanks for the explanation. I have noticed the same for OEX and SPX as you mentioned.
Regarding IB not allowing the orders, it must just be the logic in their compliance checks.