Split the spread order

Discussion in 'Interactive Brokers' started by cooker, Oct 7, 2020.

  1. cooker

    cooker

    I got an email from IBKR today saying I should "Consider placing split spread orders". I use MidPrice orders exclusively, is that what they are talking about or am I confused?
     
  2. xandman

    xandman

  3. cooker

    cooker

    Yes I saw that page already. There is no discussion of "MidPrice" orders there.
     
  4. xandman

    xandman

    When you select Mid-Price from the TWS drop down, the system locks on to an absolute price according to the current B/A. If it takes you a couple of seconds to click submit and the B/A has moved away, you are still locked into the absolute price although the relative Mid-Price has moved.

    By selecting the Adaptive Algo, it will find the relative "mid" when you click submit as shown on the first animation.

    In fact the choices are: bid +20% , bid +30%, mid, ask -30%, ask -20%.

    Cool. Now, I know how to capture a half-nickel increment. Gravy.
     
    Eikfe likes this.
  5. cooker

    cooker

    Ok thanks
     
  6. It seems the algo only adjusts to become more and more agressive until filled. I would prefer the algo to move up and down with the market.

    "If it doesn't fill, it is resubmitted at a slightly more aggressive price. It continues this pattern of "wait and move" within the spread until it fills, is canceled, or hits the limit price cap/floor."