How to reverse a position in a bracket order when profit taker is hit?

Discussion in 'Interactive Brokers' started by flying_dutchman, Dec 25, 2022.

  1. Robert Morse

    Robert Morse Sponsor

    Again, you are making this way too complicated. But if you insist, and it is really not necessary, you can create a conditional order to sell short only after you sell long but entering both orders at the same time creates the same result except for the delay from the conditional order. And in your example, the entry price and exit are 10 points away so what is the rush. It makes very little sense to me.

     
    Last edited: Dec 25, 2022
    #11     Dec 25, 2022
  2. Hm what condition type are you referring to? I'm familiar with the price and time conditions.

    Ideally, I would like to put a single order (sell limit for 20 shares) instead of 1 order to close the long position, and another to open the short position. Fewer orders would lower commission costs.
     
    #12     Dec 25, 2022
  3. schizo

    schizo

    You don't even need to do that. Why create two separate orders? Just enter one sell order for 20 shares at $110. (Well, cancel the child order first.)
     
    #13     Dec 25, 2022
  4. Robert Morse

    Robert Morse Sponsor

    This is software dependent see if you can enter one sell order for 20 shares when long 10. The order needs to go to the market as two orders, but some software will do that for you. The short-sell order needs to do a regulatory check to see if the security is ETB or if it requires a locate.
     
    Last edited: Dec 25, 2022
    #14     Dec 25, 2022
  5. schizo

    schizo

    Well, of course, but most (if not all) platforms that I've used so far had a "reverse" button to simply reverse position on the fly. Imagine sending two separate orders just to reverse in a chaotic market? That would be a nightmare.

    Edit: on second thought, I speak as a futures trader. So what I say might not apply to stocks.
     
    #15     Dec 25, 2022
  6. tomkat22

    tomkat22

    Exactly. And it's the traders responsibility to check FIRST to see if the stock is even shortable.
     
    #16     Dec 25, 2022
  7. schizo

    schizo

    I can't really comment, since I quit (day) trading stocks since the early 2000s. Back then, it was rather simple and straightforward. Now, with so many restrictions, short selling seems totally impractical.

    BTW they've introduced new rules and regulation to curb short selling after each bear market, eg. 2000 and 2008. You can bet they will come up with another flurry of restrictions after the current bear market as well. I wouldn't be too surprised if they tried to ban short selling altogether.
     
    #17     Dec 25, 2022
  8. tomkat22

    tomkat22

    Actually short selling is pretty easy these days as long as it's not some small cap,low float piss ant company.
     
    #18     Dec 25, 2022
  9. You make it sound like most people don't short stocks. Is this true? I don't have as much trading experience as you do so I don't know. I would be shorting large cap stocks. No way I would short something like GME or something else with small volume.
     
    #19     Dec 25, 2022
  10. OP wants to trigger everything automatically and have all orders ready at the start. They refer it as parent/child orders because that is how the API refer to orders that execute in cascade. Child orders are set and ready to be submitted when the parent order has entered the market. If the parent did not enter the market, a child order does not get triggered.

    One way to set up the whole system would be to set a bracket order (3 orders) with a profit taker and a stop loss, depending on a parent for initial execution.

    Then set another bracket order to sell again at the profit taker level with the parent being a limit order at that 110 level.

    OP basically wants that bracket order to reserve automatically.

    There's also another option with conditional orders, but a limit order is essentially that, a condition to enter the market.

    https://www.interactivebrokers.com/en/trading/orders/conditional.php
     
    #20     Dec 25, 2022
    flying_dutchman likes this.