IB: limit orders for commodity spreads?

Discussion in 'Retail Brokers' started by TWolf, Apr 19, 2012.

  1. TWolf


    Talked to IB rep; didn't get an answer I was comfortable with. Resulted in a confusing discussion of credit spreads vs debit spreads, orders being filled at market, etc. My current broker offers limit orders for spreads but the orders are NEVER executed properly; IB sounds like they might be the same.

    Simple question, I would think:

    Can I place limit orders on exchange recognized commodity spreads through IB?

    I know I can do it through firms like Crossland or RCG, but I'm not a pro, just a profitable amateur so they're not really cost efficient for me when you factor in platform costs, data feeds, and commissions designed for high volume traders.

  2. def

    def Sponsor

    if you're talking future spreads - yes in our latest release

    "Support for direct-routed native inter-commodity futures spreads is now available in TWS. To create an inter-commodity spread, enter the contract, for example HO.CL, on a ticker line and select Inter-commodity Spreads as the type. Hold your mouse over the spread to see the combo description. Hold your mouse over the blue star to see the price calculation. "

    if you're talking options, which exchange/contracts ?

  3. RobertG


    I do 5note/10note spreads right on the DOM
    if they are recognized spreads, you should be able to place limits no problem. I am not an IB customer, but I would assume that they would have the same.

  4. TraDaToR



    I am an IB customer. IB offers native futures calendar spread limit orders just like Crossland and RCG, but not native intercommodity spreads like Crack/Crush/Corn-wheat/ 5-10 years...

    And IB only offers 1 level of depth for calendars.
  5. Tradator -

    Looks like they're starting to roll out the native 1:1 energy cracks in TWS 925, long time coming! Hopefully Brent/WTI and fixed income are not too far behind.

    Depth was available on the calendars when I first opened my account three years ago, then disappeared.
  6. TWolf


    Def - No options, just futures.

    TraDaTor - Calendar spreads; have not yet ventured into intercommodity spreads but am headed that way (soybeans/corn has gone ballistic recently). Looks like they now offer them per Def's post above.

    Regarding depth, this is something I'm not yet familiar with. My current broker (OptionsXpress) doesn't offer any, that I am aware of. Any chance you guys could enlighten me on what this is and its usefulness?

    TraDaTor - On an unrelated note, I believe you had asked on my other post about limit order issues who my broker was; not sure if you saw my response but OptionsXpress is where I got the goofy responses from 3 different people; hence, I'm looking to move.

  7. Depends what your trying to do. If there is an actual electronic spread market for the spread then you should be able to put limit orders out and get the right price. On the other hand, if you are doing it directly (without an actual spread market) you will usually get legged up. (ie. picked off by an algo that recognizes what you are trying to do)

  8. TraDaToR


    Nice. Just saw this tonight.:)
  9. kostia00

    kostia00 Interactive Brokers

    Starting tomorrow, the CME inter-commodity treasury and swap spreads will be available in IB TWS 925+. In order to use them, please enter the spread symbol specified on CME page on the main page and select "inter-commodity spread" popup menu item in TWS.

    See http://www.cmegroup.com/trading/interest-rates/intercommodity-spread.html for more information about these products.
  10. Kostia -

    Great news! Many thanks to whoever made this happen, I personally think the lack of native intercommodity spreads was the only thing holding IB back from being a top-tier futures broker.

    PS -

    Please add COIL/WTI (native to ICE/IPE) probably one of the most heavily traded energy spreads

    Also RB/HO (native to NYMEX) which shouldn't be too hard since you already have the other cracks available
    #10     May 3, 2012