Interactive Brokers Hedge Orders - No BUY + BUY or SELL + SELL?

Discussion in 'Order Execution' started by jtrader33, Feb 12, 2013.

  1. In TWS I haven't been able to attach a hedge order that is the same side as the parent order (unless the parent order is an option). For example, if I enter a BUY order to buy 1 ES contract and want to hedge it by BUYING 1 CL contract, it won't let me do it. I can only enter a SELL for CL (the attached hedge order).

    The presumption that all things are positively correlated is of course silly. Is there a way to do it? Or IBSoft/dst/Kostia/def/etc, will you guys please add the functionality for both BUY and SELL?
  2. Have you tried a combo order?
  3. I don't think a combo does what I want (unless I self manage it via API). For example, I submit a resting limit order to buy ABC at 75.60. If it fills, I want a market order submitted to buy XYZ to hedge regardless of the current pricing relationship between ABC and XYZ. This functionality currently exists, they just didn't implement it correctly / completely.
  4. dst

    dst Interactive Brokers

    This would be a kind of pair trade, with ability to have the same side for both orders (right click on the order, and choose attach - pair trade; currently we only allow opposite side); as with any other feature request - would you please post it into our feature poll and perhaps elaborate on (a) what's the use case for this would be (this will help us understand if any of the existing tools could be used) - it is a bit odd to hedge long STK with another long STK or its derivative (b) if this is trully a pair trade or you need ability for more than 2 contracts to participate in such group/chain.

  5. dst- Thanks for responding, appreciate it. The use case is that not all stocks, futures, rates, etc. are positively correlated. As an example, SPY and SQQQ have roughly a -.90 correlation. If I bought SPY and wanted to hedge it with SQQQ, I would need to buy SQQQ as well, not sell it. Selling it would add to my risk rather than reduce it. Having the option of multiple pair legs would be nice, but I'm guessing that would require a delay in implementation whereas I imagine allowing trades on the other side would be almost zero work.