IB - buy and immediately sell stocks - best way to do it?

Discussion in 'Order Execution' started by blink18, Jun 22, 2018.

  1. blink18

    blink18

    What is the best way to buy a stock and sell it immediately with minimum costs and some control over the price? I would like to pay only $0.01 for BID/ASK spread + IB comission.

    I made a few rules:
    1. Stocks with high liquidity (volume > 1 MIO)
    2. Stock price > $50
    3. Buy
    4. Sell

    Since prices constantly change, should I use Snap to Mid order? Market order? Limit order?
     
  2. Robert Morse

    Robert Morse Sponsor

    Odd that making money on the trade is not your priority vs lowering costs.
     
  3. Ditto. If transaction costs are a major component of your profit objective, you're "fishin' in a dry hole".
     
    piezoe likes this.
  4. blink18

    blink18

    Tax reasons. I'm not from USA.
     
  5. tommcginnis

    tommcginnis

    I think what you want is to create a bracket order in BookTrader, with your limit bid set +1¢ above the BID, and your limit ask set -1¢ below the ASK.

    For your brackets, you can set your profit-taker 0.005% (half-a-percent) away, and for your stop loss 0.0025% (quarter-percent) away. Set the BookTrader settings such that when you click on an established trade/price, you move-or-cancel the order. (That way, you have exits in place as soon as you're hit, but you can move them if your mouse is faster than the market -- a handy thing in really fast markets.)

    So, *is*that* what you're asking?
     

    • If the order has to be filled use Market order.
    • Otherwise use Limit order.
     
  6. piezoe

    piezoe

    I'd be cautious. I've heard jail food has deteriorated down to bologna with yellow mustard on white bread and koolaid.
     
  7. What are you doing converting currency?