Trading Orders

Discussion in 'Order Execution' started by spindr0, Aug 30, 2009.

  1. spindr0

    spindr0

    Suppose a stock is quoted at 32.20 by 32.40 and I place an order to buy at 32.21. Now I'm the best bid.

    Is there an order that will allow me to specify that if someone comes in a penny better at 32.22 then my order will be increased to 32.23 and will continue to be increased by a penny up to some limit that I choose, say 32.31?

    I am a user of IB and I've looked through their 50+ order types but I can't seem to find anything that does this. I would have thot that some sort of PEG order would do the trick. Any suggestions?

    TIA
     
  2. IB's REL (relative) order type, if you specify an offset of 1 cent, does what you want.
     
  3. IB guys/gals:

    do you see internal liquidity versus external liquidity?

    IB crosses orders first internally (via Timber Hill) then it sends outside. When you look at L2 and T&S can you tell if your order will be/was crossed or sent outside?

    OP, sorry to jack your post, semi relavent material though.
     
  4. I've played that game a bit before with relative orders.

    Let's say it's 32.20 x 32.40

    You do the relative order for 32.21 bid, incrementing by 1 cent.
    A few seconds later some BOT bids 32.22
    Your relative order changes to 32.23
    The BOT comes back with 32.24
    A few seconds later you're at 32.40 & buying at market.
    As soon as your order is filled, price again goes to 32.20 x 32.40!

    I say oh, fuck this bullshit! I don't trade crap like this in a long time.
     
  5. spindr0

    spindr0

    Thanks for the pointer. that will do the trick as long as there's an ability to set a price limit. Otherwise, NG.


    Not a problem at all


    That WOULD be a problem
     
  6. Yes, you can set a limit price as part of your REL order at IB.