How do SNAP orders work from IB?

Discussion in 'Interactive Brokers' started by yosuji198, Mar 3, 2020.

  1. yosuji198

    yosuji198

    Hi Community,

    I see the SNAP to MKT, SNAP to MID, SNAP to PRIM orders but IB's website doesn't describe them well.

    If for example I'm buying an options spread where the bid price is 0.10 and the ask price is 0.90 and the midpoint is 0.50 - then if I put a SNAP to MID order with an offset of 0.001, then how will IB go about trying to fill that order?

    And what is SNAP to PRIM (primary orders) what does that even mean?

    Thanks!
     
  2. lindq

    lindq

    In both cases, your order is routed to Robinhood. Where, as with most of IB's SNAP orders, it will sit unfilled.
     
  3. yosuji198

    yosuji198

    Ok I think I understand it now. Let's say for example bid price is 0.10, ask is 0.90 and midprice is 0.50. And I put in an offset of 0.01

    SNAP to MID:
    Sell order is 0.5 + 0.01 = 0.51, which essentially becomes your limit price
    Buy order is 0.5 - 0.01 = 0.49 limit price

    SNAP to MKT:
    Sell order is 0.10 + 0.01 = 0.11
    Buy order is 0.90 - 0.01 = 0.89

    SNAP to PRIM
    Sell order is 0.90 - 0.01 = 0.89
    Buy order is 0.10 + 0.01 = 0.11

    I was thinking the SNAP to orders were smart orders like IBALGO but that's not the case. Essentially, instead of manually typing in different limit prices until your order is filled, you're manually typing in offsets until your order is filled. It's alot easier to type in small offset numbers than type in the whole limit price. That's all.