When you want to change your order because your order will not get filled, don't cancel the first order. Just put the new order and after the new order gets filled, then you might decide to cancel the fisrt one if you think there is a change to get it filled. If IB cancels your first order after you put the second order, you won't be charged cancellation fee.
I meant option spreads..such as a put or call spread, butterfly, condor etc. Anything other than just long or short one strike. Multiple strike trades entered as one order don't get charged modification fees.
Why would IB cancel your first order? Should they not leave it alone and leave the decision up to you?
They won't cancel your order and thats a retarded way to trade options by placing more orders rather than changing your price
I agree. Cancellation fees are part of your cost at IB. If your strategy requires many changes, find another broker. Are the cancel fees material?
Do you understand what he is doing? Hajinow is operating close to his margin limit. When his second order is filled, he no longer has the buying power to support the first order, so IB cancels it. Since the first order can not be reached without the second order being filled, it is not that risky. This is a pretty well known trick with IB and option cancel fees. It has been mentioned on this board a number of times.
They will, if your account balance won't support the trade once the second order has been filled. If you are leveraged up like Hajinow, it is retarded not to trade this way.
Kevin, you made my job easy. Thanks I have paid $7000 for commission this year and I have only less than $2 cancellation feel for the whole year. Last year it was about $20. I have paid $1000 interest on margin and I have cancelled at least 200 orders. So you see cancellation fee for an active trader is nothing compared to other costs.