Interactive Brokers Implements Price Caps

Discussion in 'Retail Brokers' started by ajcrshr, Sep 13, 2016.

  1. Thank you, def, for the reply.

    As it happens, one of my orders was price-capped just today.

    On Friday evening after market close, Acanthe Developpement (ACAN/SBF - Euronext Paris) announced positive news. Today (Monday) before the open, I entered a buy order with limit 54 cents, but was capped at 51 cents. The close on Friday was 49 cents, so IB capped me at just 4 percent away from the previous close. The price in the opening auction was 53 cents. To IB's credit, just one or two seconds after the opening auction, my order was filled at 54 cents meaning that the price capping was at least adjusted/ removed quickly.

    --> Price caps do not work well for the first transaction of the day (opening auction etc) as they are based on the previous price.

    --> Can you please further improve on the price capping algorithm by deactivating it for the opening period after a news event has taken place (press release, regulatory filing)? I am sure you already flag stocks with potential market moving news, as IB Group is also a market maker.

    The other option would be to give us a dialog box to override the cap in TWS.

    Thanks
     
    #41     Sep 19, 2016
  2. Happened to me this morning. ASH closed at 122.33 and opened at 123.27. There was no apparent unusual trading in the stock and customer service was unable to explain why the order was capped at a price far below anywhere the stock had recently traded. And yes this caused me to lose money - just a few bucks in this case but still annoying esp with no explanation.

    capped.png
     
    #42     Sep 20, 2016
    d08 likes this.
  3. Is that 26 shares? Maybe IB handles odd lots differently. What happens when you trade round lots?
     
    #43     Sep 20, 2016
  4. Sig

    Sig

    It makes no sense to handle odd lots differently in this context right? If they're protecting against some phantom regulatory menace it would apply equally to round and odd lots.
     
    #44     Sep 20, 2016
  5. Not sure what "makes sense," but many brokers process odd lots and round lots differently. My understanding (which could be wrong) is that odd lot fills aren't held to NBBO.

    Anyway, are you having the same capping issue with your round lot orders?
     
    #45     Sep 20, 2016
  6. d08

    d08

    Looks like price capping is back even for far out limit orders. It used to be that these orders would go straight to the market whatever the price but not anymore.

    I'm down $4k in minutes due to this as it submits an idiot order (visible limit at bid to the main market...). Might as well burn the money with this order cap.

    Is there any way remaining to directly access the market. I don't care about getting a bad fill, as long as it's immediate.
     
    #46     Oct 22, 2021
  7. Sig

    Sig

    Do you have a backup broker you can do an opposite order in to flatten yourself out until The Algorithm deems you worthy to enter an order again? Maybe could also enter an opposite position with a correlated asset using IB if you don't have the cash in another broker? Good luck.
     
    #47     Oct 22, 2021
  8. Maybe IOC?
     
    #48     Oct 22, 2021
  9. Is IMPOSSIBLE trade most OTC markets stocks (and most illiquid stocks from nasdaq) with interactive brokers because their price caps are very rigorous.

    Some time ago I buyed a stock for 4. After some days the bid ask go to 5X7, but interactive brokers reject a order to sell the stock for 5 (last price is 5.1). Next day stock down to 3 and I lose money

    Yes, is a good idea prevent people sell a 1000 dollars stock for 1 cent, but there are many stocks with larger spreads
     
    #49     Oct 22, 2021
  10. fortunately there is no price cap if you try buy stock below market price or sell above market price (yet). Some brokers like Schwab, Fidelity or Robinhood refuse a test order for buy facebook stocks for 1 cent or sell bank of america stock for 999.999
     
    #50     Oct 22, 2021