will these orders be cancelled at IB?

[ProgrammerGuy]

Okay so I have $100,000 of account equity. I can get 200,000 of overnight buying power and $400,000 of intraday buying power.

Question 1) Can I place $500,000 worth of buy limit orders? assuming not all will get filled. All these orders are used to open positions none to close.

Question 2). Say I place 5 minutes before the market closes $300,000 worth of (GOOD TILL CANCEL BUY LIMIT ORDERS). At time the time market closes NO ORDERS have been filled. I would like these $300,000 worth of buy limit orders to remain valid for the next day. Is there going to be a problem, because overnight buying power is only $200,000 or will this not be a problem?

Thanks

 

[ProgrammerGuy]

no one know?

 

[Bell]

Yes, you can place daily orders in excess of your buying power. I was doing this many times. I can't tell you for sure about overnight, probably yes as well.

 

[ProgrammerGuy]

thanks bell,


I ended up calling and the answer to question1 was..


By representative 1: NO
By representative 2: YES

 

[speculatus]

Quote from ProgrammerGuy:

Okay so I have $100,000 of account equity. I can get 200,000 of overnight buying power and $400,000 of intraday buying power.

Question 1) Can I place $500,000 worth of buy limit orders? assuming not all will get filled. All these orders are used to open positions none to close.

I'm pretty sure you can - when you submit a limit order, your buying power does not change until the order gets filled. Before any broker sends an order it check that account has enough equity, so all "under capitalized" orders will be rejected.

Question 2). Say I place 5 minutes before the market closes $300,000 worth of (GOOD TILL CANCEL BUY LIMIT ORDERS). At time the time market closes NO ORDERS have been filled. I would like these $300,000 worth of buy limit orders to remain valid for the next day. Is there going to be a problem, because overnight buying power is only $200,000 or will this not be a problem?

Thanks

The same rule applies here. But if you got all of those fills, you'll get a margin violation warning and positions worth of $100k will be force-closed...