Ok you got it in reverse, hence why you always got hit with the worst price. If you are hitting the ASK+0.1 when you buy, then it's worst than MKT. Why would you do that? pay more than market? Bid means you are a bidding for a price, that is the buyer side, Ask means you are "asking" for a price as the seller Bid is always lower than Ask, which means if you want to buy, you don't go for the ASK, because this is MKT so it's not an issue with IB, it's you who got it in reverse What Is Bid and Ask? The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask.
When you lift ASK + 0.1 it doesn't mean that you are buying the ASK + 0.1. It simply means that the limit price will be ASK + 0.1. For example if the BID/ASK is 250.5/240.6, if you choose ASK + 0.1 it means that it will fill your order at maximum price of 240.7$. It is just a limit order but a bit above the ASK
hello ??? you got everything in reverse, the BID is always smaller than the ASK, in your example, it's reversed. If you said BID+0.1 when the ASK was more than the BID+0.1 I could see your point, but here you have everything upside down, which explain why you keep getting the wrong price in your trades look at the text and links I posted above,
just in case you missed it !!! "The bid price represents the maximum price that a buyer is willing to pay"
ok I think we are getting confused here hehe. Let's say I don't have any positions. I want to go long. BID/ASK is 250.5/240.6. If I send a LIMIT order at the ASK I might not get filled if the stock is moving fast. So I send a LIMIT order at the ASK + 0.1 meaning if the stock moved to 240.7 I would still get filled. If the stock moved higher than 240.7, I won't get filled. It is safer than using a MKT order because you won't get filled at a very bad price. Now when you sell, you sell the BID - 0.1. so in the case the price was moving down, I would still get filled. If BID is 15. I send a SELL LIMIT order at the BID -0.1 meaning I would get filled even if the price goes to 14.9 Check this post https://forums.bearbulltraders.com/topic/1174-marketable-limit-order/
ok I see but you still have bid/ask backward, bid/ask can't be 250.5/240.6, bid is always lower than ask, not sure why you don't get that very basic principle, if you confuse this, then maybe that's why you get hit with a worst price Obviously you didn't read the links or posts above when it clearly says what BID and ASK are.
so in summary, it's a MKT order with an upside limit on the market ASK, so you don't get completely destroyed on the ASK
No it is a LMT order above/below ASK/BID instead of MKT order so you don't get destroyed on the price using MKT order
LIMIT has always price, in your case, it's a BID/ASK play, you just limit the damages of the BID/ASK when you submit the order, hence why you can't control anything and always get hit at the worst. You should try the STOP LIMIT, maybe a better fit.