Damn, life got interrupted so I'm only now getting back to my thread to post replies. Hopefully there are still interested responders.
There seem to be 3 categories of US options:
I haven't configured my IB SMART router at all, and yes: I suspect I'm paying waaaay higher fees than I need to by virtue of just accepting IB's default SMART settings. (That being said, the parent issue is that I just want as much $ in my pocket as possible after all is said and done, and both rebates and fills are indeed part of that picture.)
See above for what I think are the 3 types of option increments that I see on equity options...
Yes, as above: I think I'm probably a sucker in not having learned how to optimize the IB SMART router settings...hoping this thread will help in that regard.
This actually sounds like a plausible explanation. Is queue priority strictly respected/regulated at every exchange? I saw a few replies ITT that hinted at the ability for some HFT's to somehow preferentially jump the queue at a given price point...
I'm getting a better understanding thanks to the replies ITT...though I think I'm still in the dark as to how to avoid this. But even just optimizing what I'm able to would be a step in the right direction. Are the statements below (reflecting my understanding) correct?
There seem to be 3 categories of US options:
- Ones that ONLY trade in increments of $0.05, and you're not even able to enter a non-nickel price (in IB at least);
- Ones that are part of the Penny Pilot Program (PPP), which if I'm understanding correctly display and trade in $0.01 increments;
- Thirdly, ones that only DISPLAY in $0.05 increments, but for which you are actually able to input penny-increment orders (that don't get rejected, but I think only post to certain exchanges). The example I gave in my OP was for this third type: I could input a Sell price of $0.24, but it only shows up in the quote window as $0.25...though if it gets hit, it'll be at the $0.24 price I input.
I haven't configured my IB SMART router at all, and yes: I suspect I'm paying waaaay higher fees than I need to by virtue of just accepting IB's default SMART settings. (That being said, the parent issue is that I just want as much $ in my pocket as possible after all is said and done, and both rebates and fills are indeed part of that picture.)
See above for what I think are the 3 types of option increments that I see on equity options...
Yes, as above: I think I'm probably a sucker in not having learned how to optimize the IB SMART router settings...hoping this thread will help in that regard.
This actually sounds like a plausible explanation. Is queue priority strictly respected/regulated at every exchange? I saw a few replies ITT that hinted at the ability for some HFT's to somehow preferentially jump the queue at a given price point...
I'm getting a better understanding thanks to the replies ITT...though I think I'm still in the dark as to how to avoid this. But even just optimizing what I'm able to would be a step in the right direction. Are the statements below (reflecting my understanding) correct?
- I can submit to a specific exchange (rather than using IB SMART), and I'll be first in the queue at a given price level, and will 100% be the first one filled at that price on that exchange? (Or can I somehow still be jumped in queue priority?)
- Both execution price and rebate (or fee) are variables in how much money will end up in my pocket at the end of the day, and there isn't a cut and dried "optimal" way to route orders to maximize that dollar figure because much of it depends on how the buyers are choosing to route their orders?