Paying the spread on Interactive Brokers

Discussion in 'Options' started by stepseazy, Feb 1, 2010.

  1. spindr0

    spindr0

    You can't get killed on the fill if you use limit orders.

    Getting filled at the midpoint of the B/A is a function of who's buying and selling and at what price. It has nothing to do with the broker.
     
    #11     Feb 1, 2010
  2. Are you playing calls or puts? I have having a heck of time this month. I think it is the market not giving us a break.
     
    #12     Feb 1, 2010
  3. actually about half half. Yeah, I'm having a bad month too. I switched brokers at the beginning of Dec and I thought that was part of the problem.
     
    #13     Feb 1, 2010
  4. I pretty much do the same as the rest except for one thing. If I am entering say 12 spreads, I will only enter 4. Once they are filled, I will enter four more until I am completely filled. I trade ES on Globex. I can get filled halfway between the bid/ask most of the time, but sometimes I have to get within .25 of the ask if I am going long, for example.

    By spreading out my entries, I average out better. Recently, I have put in one third at 11:30 EST, 3:30 EST, and the last third between 3:45 and 4:00.
     
    #14     Feb 1, 2010
  5. I saw no mention of that. Limits usually have positive slippage, so you get "your price." But of course, no guarantee you get filled.
     
    #15     Feb 1, 2010
  6. I am using limit orders. I typically don't have time to monitor my orders and change my limit price throughout the day so I want to get filled quickly.
     
    #16     Feb 1, 2010
  7. Then how are you "paying the spread?" The definition of a limit order, is you set a price you want to be filled at, or better.

    "I want to short at 149.5". You get filled at 149.5 or perhaps 149.25, etc... what do you think you are getting it at?
     
    #17     Feb 1, 2010
  8. What you are describing is not the way it works.

    Are you using COMBO to select he options in the spread?

    Do you see a bid/ask for the spread? It should be very wide.

    If you enter your limit price at something worse than midpoints, you will get filled. It may need a dime worse, or 20 cents worse, or maybe only a nickel worse. A lot depends on which options you are trading.

    If they are thin, thin, thin, sans liquidity, they you are at mercy of market makers. If actively traded, and you cannot get a decent fill as I described, then. call customer service and get help with this.

    Mark
     
    #18     Feb 1, 2010
  9. Yeah I guess I do have a prob. It is costing me. I don't think it is liquidity. I have to adjust my limit to the bid or ask or very close before getting filled. It is def different from what I was getting before like you guys mentioned which was near the midpoint. I realize if a bid is small then it is not the "real" bid so I do adjust for that. I guess I will call cust support. I've even had an order on the bid which was smaller than the bid size which just sat there. I had to cancel then re enter it then it went through. Yes I was using the combo trader.
     
    #19     Feb 1, 2010
  10. jagmot

    jagmot

    Have you taken into account volatility? For most of 2009 I would let an order sit and the intraday movement would take it off center and get filled. Lately, there have been plenty of days where the market has just sat in a tight trading range and I've needed to move the limit to get filled.
     
    #20     Feb 1, 2010