Basket trading and buying power

Discussion in 'Risk Management' started by ezbentley, Mar 22, 2009.

  1. I have a newbie question regarding how basket order is handled.

    Let's say you use a basket order to submit 1000 limit orders on 1000 equity symbols before the market open, but your available fund only allows say 30 or 40 open positions.

    Will the broker deduct your buying power based on order submitted?? In this case the entire basket order would be rejected. Or will the broker deduct your BP only after your order is actually executed? In this case the first 30 or 40 orders will be executed and the excessive orders will be rejected after the BP is maxed out.

    Is there a standard way to handle basket orders? Or is this broker dependent? If it's broker dependent, can someone comment on how each broker(IB, Genesis, Sterling..) handles basket orders?
  2. No one does this type of trading?
  3. it depends on the broker.

    some allow you to do this, some don't
  4. Can you name some that do?
  5. IB definately one of them. (retail)
    Bright (prop)
  6. Bob111


    IB is screwed long time ago by their "risk" model. sometimes it will allow you to place a basket,sometimes not(talking about same account,even on same day)..
    sometimes some of the orders are rejected..sometimes not..not one knows anything about this problem and not willing to listen,when i tried to explain..
    their new platform just make things worse..i personally give up on them and their basket trading..
  7. Hi Bob,

    That must be quite frustrating. Somehow I feel basket trading isn't that unusual of a strategy. But it seems like not many people are actually trading in this fashion, therefore the lack of broker support.