Use InteractiveBrokers and Stop-Loss? BEWARE!

G

GatlingGun

If you need to submit a stop-loss order through interactive brokers *outside normal trading hours* and you are used to submitting limit orders with them, be sure you check the additional box under the "Time In Force" section of the order screen (see ib_stop.png, below).

For some bizarre reason, IB decided to code their application so limit orders do NOT require the box to be checked (in fact, it's greyed out...)... however, you get royally hosed if you are in a rush and submit a stop-loss order before market open (and their defaut settings)...

I was already $2000 *positive* in a short position this morning before the employment numbers came out... I put in a stop and reverse above the ask at 8:29:45 ET using a buy stop-loss order... I saw the little clock that IB puts next to the order, but didn't have time to investigate and correct before I lost over $6000* on the rocket ride through my short position.

The supervisor I spoke with at IB even acknowledged that this problem has been around for a long time and he gets daily calls from furious customers like myself... does IB do a damn thing about it? NO. :confused: Will they credit shares to my account? See previous answer.

This is negligent behavior... no question... sadly the binding arbitration agreement prevents any legal action from being feasible unless your losses are over $50k according to a local attorney...

If you've had this happen to you, perhaps a sufficient volume of us calling them with a friendly reminder would prompt someone in their software management get off top dead center... all it takes is a simple warning that pops up if you submit a stop-loss before normal trading hours (without the stupid box checked).

Thank you IB.... :mad:
 

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You can also fix this via the order defaults. I discovered it via simulated trading and fixed the problem without any difficulty.

I think what this illustrates is that when using a new tool, don't just assume it works the way you think it does. Test.
 
Quote from Rodney King:

"didn't have time to investigate and correct..."
More...

Of course, this wouldn't be a complete thread without some turd to kick you while you are down.

Yes, this is all my fault. Have a great day, friend.
 
Actually for me it is better the way IB has programmed it. It protects your stops from getting filled outside RTH while it provides execution for your limit order any time.

I do not agree IB changing that. It is fine the way it is and it is pretty clear.
 
Quote from intradaybill:


I do not agree IB changing that. It is fine the way it is and it is pretty clear.
More...

Perhaps you misunderstood... I said add a warning popup after hours... it could even be a popup that let's you make it a one-time warning... point-being if you trade futures, there is little value in assuming RTH for order-entry... they trade almost 24 hours.

Speaking as someone who has coded much of his life, and served in the capacity of product manager at a multi-million dollar software shop; it's a problem if people are losing real money daily, and that is exactly what their supervisor said on a recorded line.
 
Gatling Gun:

Perhaps a well-worded suggestion at http://www.interactivebrokers.com/en/general/poll/poll.php would get things fixed in a year or so. Since you have lots of software experience state the problem so management types could understand it and word the suggested solution so that it is understandable by software types and users. I'd vote for it if you posted here at ET once you've done so.

Jack
 
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