Why Does IB Still Not Offer ECN Pegged Orders?

[winniNH]

Quote from DAV:

Giggollo, bs2167, njrookie, et al.

As of today, IB has removed the surcharge (0.013/0.008) for API native (Island directed) relative orders / pegged to market or midpoint orders.
These order types will now be charged the standard rate of 0.005 per share with $1 min per order and 0.5% of value max per order.
We have done everything we can to enhance the pegged orders per our client’s requests and we hope you'll make full use of them, so if any issues arise let us know.

Thanks a lot DAV. IB has really impressed me on this one.

 

[Kazak_Trader]

Hello,


I have been using IB's platform and am now exploring Ninja Trader... any ideas on the pros and cons of each? I heard from a friend in Russia that Ninja Trader is very easy to use and offers free charting... is that true?

 

[NikEy]

May I ask why all of you are using pegged orders?
It seems that IB doesn't allow for negatively pegged orders, so I only see a marginal advantage here. Which leads me to my actual questions:

1) Which broker provides negatively pegged orders?
2) Is it possible to have more than 100 algos running at a time on the TWS? When I use A/D for example, it will won't let me place more than 100 of these, after which it complains.

Thanks a lot for your replies

 

[DAV]

Quote from NikEy:

May I ask why all of you are using pegged orders?
It seems that IB doesn't allow for negatively pegged orders, so I only see a marginal advantage here. Which leads me to my actual questions:

1) Which broker provides negatively pegged orders?
2) Is it possible to have more than 100 algos running at a time on the TWS? When I use A/D for example, it will won't let me place more than 100 of these, after which it complains.

Thanks a lot for your replies

Hello,
For #1 please take a look at the passive relative order type.
http://individuals.interactivebrokers.com/en/trading/orders/passiveRel.php?ib_entity=llc

Please check your PM box for #2.

Thanks

 

[xbaha]

Hi

for cost+ , is there ecn rebate for API execution to Pegged-to-Market Orders?
can Pegged-to-Market Orders be routed through smart, so that api execution falls under cost+ ?

Thanks

 

[DAV]

Quote from xbaha:

Hi

for cost+ , is there ecn rebate for API execution to Pegged-to-Market Orders?
can Pegged-to-Market Orders be routed through smart, so that api execution falls under cost+ ?

Thanks

You should receive the ECN rebate or fee. Pegged-to-Market Orders cannot be Smart routed.

More details here:
http://individuals.interactivebrokers.com/en/trading/orders/peggedMarket.php?ib_entity=llc

 

[xbaha]

do you mean such a trade will cost 0.013 if directed to exchange through api?

i saw somewhere in this thread that if directed to arca or island it will be 0.003 for cost+
but i cant find the official link clarifying pegged to market cost when using api directed to arca or isld, can you clarify please.

thanks.

 

[hadrien]

I have been reading this entire thread with great interest as it is addressing exactly what I am looking for.

My understanding is that it is now possible to route with TWS an option buy order with ISLAND using the REL setting. With this order, for a buy and a zero offset, the limit price of the order will go up and down following the NBBO. The following page on the IB website confirms that, with the following comment:

http://www.interactivebrokers.com/e...p?ib_entity=llc

"** Orders with a positive offset that are directed to Island will move up and down with the market.
Orders with a "0" offset are submitted as limit orders at the best bid/ask and will move up and down with the market to continue to match the inside quote."

I am unable to replicate this for an option on TWS, in paper trading mode. I have no ISLAND, nor ARCA routes available. I have no REL setting.
For a trade on a share, the ARCA route is available with a REL order.

 

[xbaha]

you cant trade options on ISLD or ARCA !

Quote from hadrien:

I have been reading this entire thread with great interest as it is addressing exactly what I am looking for.

My understanding is that it is now possible to route with TWS an option buy order with ISLAND using the REL setting. With this order, for a buy and a zero offset, the limit price of the order will go up and down following the NBBO. The following page on the IB website confirms that, with the following comment:

http://www.interactivebrokers.com/e...p?ib_entity=llc

"** Orders with a positive offset that are directed to Island will move up and down with the market.
Orders with a "0" offset are submitted as limit orders at the best bid/ask and will move up and down with the market to continue to match the inside quote."

I am unable to replicate this for an option on TWS, in paper trading mode. I have no ISLAND, nor ARCA routes available. I have no REL setting.
For a trade on a share, the ARCA route is available with a REL order.

 

[hadrien]

Being in search of a route for my option orders with IB, I came across the BOX (Boston Option Exchange) route. From what I understand, there is the possibility to route to BOX a REL order that would have a positive offset to the bid, so that would it would move, up and down with the movements of the bid from the NBBO.
Has someone got experience trading with this route and is it effective?