Stocks Pairs trade/ spread trade, through Interactivebrokers

M

mats

Is there a possibility to send a buy limit and sell limit order for 2 different stock symbols at once with the Trader Workstation. (I would need this by calculating the spread between two symbols and then buy or sell these spread with one click)
I know it is possible with options and futures but I also will need this with stocks.
thanks for suggestions
 
I just found out it is possible to define a spread between 2 stocks symbols and send it with one click to the markets. Now the problem is the colours on TWS of prices of the spread is just purple instead green/red. This means that I am not able to send active orders of the spread price. What do I have to change?
thanks
 
Quote from JangoFolly:

Did you look at their SpreadTrader within TWS?
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I think spread trader only works for the related stocks and SSFs. For example, with IBM it will only show IBM versus the SSF and IBM SSFs versus other SSFs.

I think mats is looking for something that can pair two stocks like buy 1 share INTC short 1 share AMD at a xxx spread.
 
yes I did, but as far as I understand this works only with futures and need it for a spread between 2 stock symbols. Thanks for suggestion.
 
freehouse you are right I need it for 2 stock symbols and I am just able to define it wuth a combo order for stocks. But after defining the spread on the TWS my orders do not become active, although the status is showing a green button which should be o.k. but my orders are not really in the market.
 
Quote from mats:

freehouse you are right I need it for 2 stock symbols and I am just able to define it wuth a combo order for stocks. But after defining the spread on the TWS my orders do not become active, although the status is showing a green button which should be o.k. but my orders are not really in the market.
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Both orders are dormant in our system, waiting for the opportunity to be executed at the same time. When such opportunity arises, the system will leg into the spread position and give you a spread execution.
 
IBsoft thanks for response but are you 100% sure my order will be executed? I can inform you that there were some occasions where my order should have been executed but it did not.
 
Quote from mats:

IBsoft thanks for response but are you 100% sure my order will be executed? I can inform you that there were some occasions where my order should have been executed but it did not.
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It will only be executed (at least partially) when the system asserts that it is likely that we will be able to get both legs executed.

(When we manage to only execute one leg and not the other, we have to "eat" that execution; hence we need to minimize such cases. Recall that we only give you "spread executions", i.e. only those where both legs were executed in the desired ratio).
 
I understand your explanation completely although I made several tests with only 100 shares for each order and there was not an execution although the spread absolutely reached my limit price (I was even willing to pay some more for the spread). Are there any ET traders who are able to get executions for spreads consisting of 2 stock symbols though IB TWS.
 
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