creating bracket trades with IB

Discussion in 'Retail Brokers' started by Jayford, Jan 7, 2003.

  1. Anyone know how to configure the settings for bracket trading with IB? Note, I do not wish to know how to use "Bracket Trader", only how to configure the bracket trading settings in IB.

    I figure people here will know more than IB's customer support.

    Thanks,

    Jay
     
  2. def

    def Interactive Brokers

    just click on an order and before xmitting right click and choose set up bracket order.

    Here is how to set them up via a hot key where you can set the defaults...

    The setup for hot keys isn't exactly straight forward but give the programmers some time to make it simpler. In the meantime, to set up via a hotkey:

    1. Configure
    2. choose buy or sell
    3. create short cut then go to customize
    4. make order type limit
    4. choose bracket on the autostop manu
    5. change the +/- prices for stop and autolimit (i.e. +2 and -5)
    6. click back on short cuts (do not hit ok)
    7. record the hot key
     
  3. Thanks Def.

    Jay
     
  4. I set up as per the above and have 2 questions afterwards (haven't sent a live order down yet)....

    1) Any problem changing the first order from limit to stop limit or mkt.... does this mess around w/ any of the other functions? Can i change the hot key set up to a mkt order OR change the limit on the order line to mkt (my choice?)

    2) If my first order is a buy limit or buy stop, and the order doesn't get filled.... are the bracket sell orders "live", or do they not go "live" until the order on the first line (the buy order) is executed?

    Thanks.
     
  5. BKuerbs

    BKuerbs

    ...

    1) Any problem changing the first order from limit to stop limit or mkt.... does this mess around w/ any of the other functions?


    Yes, No

    ... Can i change the hot key set up to a mkt order OR change the limit on the order line to mkt (my choice?)

    No, while configuring the Hot Keys, a Bracket Order can only be attached to a Limit Order. After the orders have been generated you may change them.


    .2) If my first order is a buy limit or buy stop, and the order doesn't get filled.... are the bracket sell orders "live", or do they not go "live" until the order on the first line (the buy order) is executed?...

    The Bracket Orders only go live when the Parent order is filled.

    There is a problem with partial fills: I know of one case, where a trader had a partial fill and the TWS did not xmit the bracket orders, but cancel them. I did have a partial fill too and the TWS did xmit the Bracket Orders. I do not know the difference, so you have to watch your orders.

    You have to watch your Bracket Orders also at Market Close: it might happen that none of your e.g. sell orders get filled. If you do not want an overnight position, you should exit the trade manually and cancel the pending orders.

    Regards

    Bernd Kuerbs
     
  6. Thanks for your reply, explanation, and warning of potential problems.... i never would have thought about the partial fill scenario.
     
  7. Can someone please give a simple definition of each of the following to help distinguish between them? Thank you

    1. Basket Orders
    2. Bracket Orders
    3. Bundled Orders
     
  8. Andre

    Andre

    Ok, I'm figuring this out. It's been taking some time. But I'm not sure I understand bracket orders. I have an existing sell limit order that I'd like to modify. Maybe this is a bonehead question... but I'm needing to leave my screens for a while. Can I essentially have two sell orders in for the same position? One that's a stop loss if it goes against me, and one on the other end for profit?

    André
     
  9. If you're in a position, using IB, then create the two orders as OCA (one cancels all). Create the two orders and before submitting use an OCA qualifier to link the two together. I typically just use the stock name as the OCA qualifier. If one gets hit the other cancels. They also adjust for partial fills.

    You may have to tweak your page layout if you don't already have the OCA column showing.
     
  10. Steve_IB

    Steve_IB Interactive Brokers

    AmbushHillbilly is correct if you already have an existing position.

    However, if do not have an existing position, then you can use a bracket order. A bracket order will send in an initial buy (or sell)order (of any type) which when filled, will send in two orders which are linked via OCA. One order will be a sell limit order - for profit taking. The other order will be a sell stop order for cutting losses. When one of the orders is filled the other order is cancelled.
     
    #10     Apr 8, 2003