Paying the spread on Interactive Brokers

No usually I would get filled right away near the midpoint. I didn't wait for fluctuations in the price. One thing I would have to look at is if the bid ask on optionsfirst was larger to begin with. I feel not really.
 
Just to be clear, you're saying that with your old broker, when you placed an order at the midpoint you'd get filled immediately, but with IB your order does not get filled and becomes the new NBBO? Is there a particular exchange that the order is usually getting parked at?
 
at my old broker I couldn't see the exchange nor the bid or ask size. I figured that when I put the order in, it would get picked up by an automated system that would calculate arbitrages quickly and that is how it would get picked up quickly. At IB I've only used the SMART system. I was half expecting someone to tell me not to use it. I figured that it was a crappy algorithm and it would wait to send the order to the exchange by waiting to chose a good place to send it, so the automated systems wouldn't see it. I have no idea how it actually works, it was just my theory.
 
Quote from dagnyt:

What you are describing is not the way it works.

Are you using COMBO to select he options in the spread?

Do you see a bid/ask for the spread? It should be very wide.

If you enter your limit price at something worse than midpoints, you will get filled. It may need a dime worse, or 20 cents worse, or maybe only a nickel worse. A lot depends on which options you are trading.

If they are thin, thin, thin, sans liquidity, they you are at mercy of market makers. If actively traded, and you cannot get a decent fill as I described, then. call customer service and get help with this.

Mark
More...

Here is the problem I think he is talking about...

You put in the order as a combo, and usually if you add the bid and ask together then divide by two you will be getting filled. But these days NO GO...

I looked at the underlying price and the problem these days seem to be that the ask's are nervous on selling too cheap, and the bid's are nervous on paying too much. Hence we had a stalemate issue.

Put the two together and you have a really crappy spread. The one spread that I can't even start to play is gold. I usually play GC naked, but ever since the margins are outrageous I looked at spreads. But to play spreads I have to play way to close to get any kind of return.

Put simply I am not playing GC, or the GLD... And this is happening through the spreads. Puts are just not worth the effort right now.
 
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