IB and Odd Lots

Discussion in 'Interactive Brokers' started by saxon, Feb 25, 2002.

  1. saxon

    saxon

    Hmm...I found an NYSE listed stock I wanted to include in my portfolio, but it's trading at 103, so I guess I'll just have to let it go. A minimum purchase of $10,300 is kind of high...especially when you are talking about a portfolio of 10 or 12 stocks.

    I don't understand why IB disallows odd lot orders--saying, I know, that it is an NYSE requirement--when most other major brokers allow them. I can even buy odd lots of NYSE stocks through a direct trade with FolioFN!

    Why wouldn't this "NYSE restriction" apply to them also?

    :confused:

    saxon

    PS. I asked IB about buying 100 and then selling, say, 44, to arrive at the size I want. No go. Odd lot sales only allowed to CLOSE a position (in NYSE listed stocks).
     
  2. def

    def Sponsor

    i believe the rule has to do with abuse of the some of the rules where odd lots must be posted by the specialist or can jump ahead of the specialist queue. Since IB doesn't internalize (match customers order flow) like some other brokers, it does not allow odd lots.

    as for buying an even lot and selling an odd lot, i will not mention anything other than, did you give it a try?
     
  3. would not you be able to buy 144 and sell 100 thus leaving you with the 44 you want to keep ?
     
  4. maybe this will work ?

    buy 156 , sell 100 , leaving you with 56 ?
     
  5. Eldredge

    Eldredge

    Saxon,

    IB includes QQQ as a listed stock even if you trade it on ISLAND (I think it should not be included if you route to ISLAND), and I have been "stuck" needing to buy 50 shares before. In those cases, I have bought 100 and sold 50 - it worked fine. So if nothing has changed (I haven't had to do this for a while), it should work for any listed stock I think (I can't remember the exact circumstances of my trades). Good luck,
     
  6. DEM

    DEM

    Hi

    I gave it a simple try: I ordered 100 BBT, sold 90, and some minutes later 10.

    And I even made some cents :D

    DEM
     
  7. saxon

    saxon

    Yeah, I guess there are a couple of different ways to arrive at an odd-lot total.

    And as Seth suggested, if I want 56 shares, I could just buy 156 and sell 100. No one could reject either side of that trade (since both are above 100).

    You guys are smart!

    :D