Interesting... How did someone joining the bid mess up his order?
Orders Tied To The Bid/Ask
- Thread starter optionstrader2022
- Start date
Robert Morse
Sponsor
It is not an algo, but you can start with one limit, then increment or decrement the price in penny, nickel, dime or quarter levels. They can be color coded.
his bid went up and up and up wanting to be best bid then was hit. it was a while ago in an illiquid market. Also, heard stories about people putting in best bid, getting market data and not realizing they are they bid so penny it and so forth; again a while ago, lessons learned.
better - what happens if there are two different accounts running this?
yes, like outbidding yourself. or mixing up bid/offer (saw that as spectator). My favorite sending in a buy hedge for around 1000 shares but sending in 1000 1 share orders; the prime broker stopped it which was nicebetter - what happens if there are two different accounts running this?
They say it works for options, but you'll need to find out for yourself. As for your other question, I believe your order will move up or down depending on the offset you specify until it gets filled or turn into a limit order.
IB also has an "adaptive algo" that seems to do the same thing. (If you ask me, there are way too many damn order types.
)https://www.interactivebrokers.com/en/trading/orders/adaptive-algo.php
Also check out "walk limit order" mentioned by @ajacobson above.
Won't that potentially cause you to go over the 390 orders/day average and thereby becone a "professional" and lose retail priority and/or your accouny (if the broker can't handle this situation)? I don't know how these dynamic order types work, but I am guessing that if they are broker implemented, the exchanges will treat each update as a separate order, and the number of NBBO price/size changes per day on many options contracts is in 1000's+ per day (even for some that never trade). Would like to be proven wrong on this if anyone else has definite knowledge, thanks!
Well, today I found that 1 minute has 100 seconds and we are talking about a world-class framework that costs thousands of dollars per month. So nothing surprises me anymore.
"Won't that potentially cause you to go over the 390 orders/day average and thereby becone a "professional" and lose retail priority and/or your accouny (if the broker can't handle this situation)? I don't know how these dynamic order types work, but I am guessing that if they are broker implemented, the exchanges will treat each update as a separate order, and the number of NBBO price/size changes per day on many options contracts is in 1000's+ per day (even for some that never trade). Would like to be proven wrong on this if anyone else has definite knowledge, thanks!"
You lose customer status. It only gets worse from there.
You lose customer status. It only gets worse from there.