IB - penny option pricing *now*

Cancel fees are still applied as standard.

If you execute against a displayed penny bid/offer then it "should trade" - but not guaranteed as it will still need to go to the exchange to execute.

 

So it would be possible to have a bid at 1.23 and have the market trade at 1.20 but not be filled if you weren't first in the cue then?

Thanks,

TNG

 

Yes, that could happen - if you're not at the front of the queue, and the opposing sell order didn't come in via us (we do have a very significant market share).

 

Ok, good to know. Cool feature though. Can't wait for the exchanges to get on board....

Thanks,

TNG

 

Does this include brokers who send their order flow thru IB?

 

When this feature is offered by the all brokers in January, will IB's current advantage become moot?

 

No, because what is comming in January is a 12-18 month long pilot on 13 option classes. What IB is offering is all the classes listed by BOX and ISE and it is offering it now.

 

Can I still get a worse price if I want, then post nasty things about IB when I do? Just asking so some of the IB bashers won't have to.

I'm sure there will be some issues with this (mostly caused by "user error") but I think this is AWESOME. Yet another way IB is making things better (I LOVE the expired contract thing -- just get options going back 1-2 months and it will be perfect).

SSB

 

This is such a superbly cool understatement thank you.

Great innovation btw, and a good example of out-of-the-box thinking, using your power where it is needed. Great stuff.

Ursa..

 

I think IB missed my other question:
Does this market share issue mean only IB themselves, or also includes brokers who send order flow to IB?