Limit offset Amount meaning

  • Thread starter Thread starter 3acor
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3acor

Hey guys,

If I enter a limit order to buy as the Ask price + 0.05

What does it mean exactly?

If the ask price is offered 100 shares 10.07$, I enter a limit order to buy 200 shares at Ask + 0.05. This means that IB will execute my trade and buy me all the shares up to 10.12$?
 
3acor said:
Hey guys,

If I enter a limit order to buy as the Ask price + 0.05

What does it mean exactly?

If the ask price is offered 100 shares 10.07$, I enter a limit order to buy 200 shares at Ask + 0.05. This means that IB will execute my trade and buy me all the shares up to 10.12$?
More...
It means that if price reaches your limit of 10.12, the trade should execute. If price does not reach that level, then no trade.
 
3acor said:
Hey guys,

If I enter a limit order to buy as the Ask price + 0.05

What does it mean exactly?

If the ask price is offered 100 shares 10.07$, I enter a limit order to buy 200 shares at Ask + 0.05. This means that IB will execute my trade and buy me all the shares up to 10.12$?
More...

Your question sounds like you're talking about a regular limit order, but the thread title includes the phrase "Limit Offset" which in the context of IB may refer to a parameter in various types of STOP orders. lindq's answer appears to apply to stop orders.

For a regular buy limit order, if your price is equal to or above the ask then your order becomes marketable. IB will execute your order with its system while respecting your limit price. Exactly how this process works is not in your control. IB may break your order into several smaller orders to various exchanges and darkpools, use intermarket sweep orders, etc.
 
lindq said:
It means that if price reaches your limit of 10.12, the trade should execute. If price does not reach that level, then no trade.
More...
oh I got it thanks
 
cruisecontrol said:
Your question sounds like you're talking about a regular limit order, but the thread title includes the phrase "Limit Offset" which in the context of IB may refer to a parameter in various types of STOP orders. lindq's answer appears to apply to stop orders.

For a regular buy limit order, if your price is equal to or above the ask then your order becomes marketable. IB will execute your order with its system while respecting your limit price. Exactly how this process works is not in your control. IB may break your order into several smaller orders to various exchanges and darkpools, use intermarket sweep orders, etc.
More...

I see thanks for the reply. Is there a way to make my trade a limit order executed at ask up to 5 cents above it with IB?
 
3acor said:
Hey guys,

If I enter a limit order to buy as the Ask price + 0.05

What does it mean exactly?

If the ask price is offered 100 shares 10.07$, I enter a limit order to buy 200 shares at Ask + 0.05. This means that IB will execute my trade and buy me all the shares up to 10.12$?
More...

My apologies for an incorrect late night post in answer to your question. Entering a buy limit above current price should result in an immediate fill up to the level of the buy limit. I say "should" because a buy limit is never guaranteed to fill in a fast moving market.

If your purpose is to enter a LONG trade only at a level above current price, then use a stop order or stop limit.
 
lindq said:
My apologies for an incorrect late night post in answer to your question. Entering a buy limit above current price should result in an immediate fill up to the level of the buy limit. I say "should" because a buy limit is never guaranteed to fill in a fast moving market.

If your purpose is to enter a LONG trade only at a level above current price, then use a stop order or stop limit.
More...

OH ok I see thanks. MY goal is to have a marketable limit order but IB software TWS doesnt have that so I figured I post a buy limit + 0.05. I was hoping maybe it fills me up on all my shares if its available until that price
 
3acor said:
OH ok I see thanks. MY goal is to have a marketable limit order but IB software TWS doesnt have that so I figured I post a buy limit + 0.05. I was hoping maybe it fills me up on all my shares if its available until that price
More...
Marketable just means that the limit price is >= the ask (for a buy) or <= the bid (for a sell). It is not a separate type of order. Regular limit orders basically do what you want here. If you want the most aggressive possible fill you could use a "sweep to fill" order: https://www.interactivebrokers.co.uk/en/index.php?f=607 . I wouldn't recommend this unless you know what you are doing, as it could cost a lot more.
 
cruisecontrol said:
Marketable just means that the limit price is >= the ask (for a buy) or <= the bid (for a sell). It is not a separate type of order. Regular limit orders basically do what you want here. If you want the most aggressive possible fill you could use a "sweep to fill" order: https://www.interactivebrokers.co.uk/en/index.php?f=607 . I wouldn't recommend this unless you know what you are doing, as it could cost a lot more.
More...

I am using market orders but I figured I can use a limit order with an offset amount basically to buy at ask +0.05 so my order will execute up to 5 cents above the ask. Whereas if I send a market order it can be executed at a very bad price. I assume the offset amount with the limit order is how you get the marketable limit order. I will have to try that tomorrow
 
3acor said:
assume the offset amount with the limit order is how you get the marketable limit order. I will have to try that tomorrow
More...
No, you don’t need an offset for a marketable limit order. It’s just a limit order with a limit price that’s at or above the current ask.
 
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