Hello: Quick question, when I use stops to get out of a losing position I have been taken out 25 to 40 cents under from where my stop was originally placed. Is this the way it is supposed to work ? I have always used mental stops, so I don't have experience with these orders w/IB. I called IB asking them if the order could be generated by the first bid, but they said it was generated on a double bid ? Still I don't get it. I have seen how the bid and the stop are at the same price but my order is not filled. Could somebody shed some light ?. Thanks !
Your stop order becomes market order if your stop levels hits to bid. If you want to get out at your stop level, use a stop/limit order instead and make the limit value equals to the stop value. Of course, you may end up without a fill at all if the market moves quickly. Alternatively, you may modify the order ticket, using the conditional tab and make a condition based on the "last" trade.
============= Optionpro007; .40 seems excessive, even for options, unless its last 2 weeks expiration ; maybe go back to mental , written, stops executed by hand, set up in advance on work station. For sure compare these 2 methods-auto verses discretion; and especially like IB Smart route, but also sounds like maybe IB quotes need help with your discretion also . Wisdom is profitable to direct.