Stop loss with different number of shares than position

Discussion in 'Interactive Brokers' started by yosuji198, Jan 11, 2021.

  1. yosuji198

    yosuji198

    Hi Community,

    I am looking into whether it's possible to do the following:

    Limit Order: Sell 200 shares at $200 limit price
    but if limit order is executed and then stock subsequently jumps then buy 100 shares at $250 limit price.

    Why not just do two limit orders you ask? Well, what if I'm long the stock for 100 shares and the price is now $300. Let's say it's a volatile stock with lots of market manipulation. If the stock falls suddenly to below $200 I want to be net short (so selling 200 shares will makes me short 100 shares). And if the stock does fall to $200 that buy 100 shares at $250 now becomes my stop loss for my 100 shares short position.

    If the stock doesn't fall then I stay long 100 shares (and the buy 100 shares at $250 doesn't get triggered).
    Is this possible without algos in TWS?

    Thanks!
    MC
     
  2. yosuji198

    yosuji198

    To be clear, the alternative to the above would be to have two orders:
    Order 1: Create a stop loss for your existing 100 share position at $200
    Order 2: Create a limit order for 100 shares short position at $200 with a stop loss at $250.

    Problem with this is I have to make two orders every time, and adjusting two orders dynamically as the stock moves would be a hassle. Thanks!
     
  3. danielc1

    danielc1

    Most brokers support oco orders and bracket orders. Look in to that.
     
  4. yosuji198

    yosuji198

    Just tried. The One-cancels-other doesn't work. Once my first limit is filled there's no more orders.
    The stop loss functionality won't work either because stop loss of an order must be on the same number of shares as the order itself.
     
  5. The bracket order makes the order size of the child orders identical to the parent (i.e. opening) order. You can't use this if you want to partially close your open position. IB has implemented it such to prevent complications in case the parent order gets partially filled.
     
  6. yosuji198

    yosuji198

    I see. thanks HobbyTrading
     
  7. Henrique

    Henrique

    Are you using interactive brokers? If yes then it’s not possible.
     
  8. Yeah, and that’s for the benefit of the trader. Makes the whole thing easy on them.
     
  9. I dig forex trading currencies so much simpler. I am still new in the markets and planning on going slower. That’s why I am using also MT4 to begin with, using them on fxpro and fxview. Haven’t tried a lot many platforms but heard of MT4’s easier interface and I am finding that to be true.
     
  10. Henrique

    Henrique

    It is actually quite alright. MT4 is good for forex trading.
     
    #10     Feb 1, 2021