I have been using market orders all along using IB TWS software, I cannot see the order type "Marketable limit order". Anyone has an idea of how to do it? Thanks
A marketable limit order is simply a limit order. Ex market of 10.00 bid and 10.05 ask. I want to buy but don’t want to I want to buy but don’t want to send a blank cheque so I send a limit order to buy at 10.07. This buy limit is above the best ask so it’s executed as a market order. Now if the market jumped to 10.07/10.09 as I’m sending the order, my order is now a limit order in the queue. I always use marketable limit orders and stop limit orders. My stop limits will have a decent range to execute on but I’ve seen way too many weird charts ( flash crashes) to use a blank stop market order.
Thanks for the reply. Do you know how I can set up the marketable limit order in TWS. Is is by entering a limit order and then setting by how much offset you want? Thanks
Example: AMZN at 1770 BUY LIMIT = 1780 => you will instantly get filled, very unlikely that price moves above 1780 within the next 200ms or so it takes SELL LIMIT = 1760 marketable limit sell order
%% Good points. The flash crashes/bad quotes i've seen were on semi liquid stiff like DVY[av voume 977k/+]; never on SPY + stuff/super liquid ETFs . Anything could happen, so its buyer beware/seller beware. Plenty of profit is made on wide bid/ ask; small caps , for example with wide bid ask [0.5, nickel]may have more slippage.......................................................