So, further to previous posts I have made in relation to my paper trading journey on IB, I am faced with yet another issue. When attempting to trade large-size options contracts, I am receiving a message informing me the order is rejected, as it is too large. Having used other paper trading platforms, I have never encountered this issue with other brokers. Why does IB impose such limits? I wonder does this only apply to simulated accounts, and it is not the case on live accounts? Between all of the 'regulatory' problems and such like, I am very unhappy that IB is my only venue to trade options here in Europe...
Why does Interactive Brokers impose such restrictive limits for options trading?
- Thread starter Con1991
- Start date
200,000 spx options is 80billion in notional.
I’m pretty sure the real system will prevent you from sending that.
I’m pretty sure the real system will prevent you from sending that.
Well, TD Ameritrade allows it.
Well, IB's sim engine is smarter than TD's, now isn't it? Have you tried to do that 200K order on a live account at TD?
Not on live account no. If the liquidity is there I don't see the issue. The brokerage receives commission for each contract after all.
Also, IB's paper account only partially fills orders, and mostly only fills upon market open and close. Which is also a sign something is amiss I would think.
Lol....no.
There are position limits that would prevent you to do so. And it's not related to IB but to the US Option market.
Why not? Try it if you are feeling that prowess in your gut.
I am unable to open a TD Ameritrade live account in my country. Otherwise I would have done it already.