What Option Exchange do you route to on IBKR to get Max Rebate?

Discussion in 'Interactive Brokers' started by JesseJamesFinn1, Jun 4, 2020.

  1. I have a bunch of DIS Calls and want to sell soon, which Exchange in your experience has the highest or lowest cost to sell if your providing liquidity? Lately been getting clobbered with high rates, not complaining just trying to learn. Thank you!
     
  2. destriero

    destriero

    You're going to lose more from microstructure by fucking around just inside the posted offer than any rebates. Most brokers have gone to a free commish model anyway. IBKR won't let you route if you're going to receive a rebate.

    Worry about price, not comms.
     
    taowave and JesseJamesFinn1 like this.
  3. With IBKR I am still under their paid model and agree with you. Thank's for taking the time to help, love you Journal, hope you crush the hell out of the Market!
     
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  4. destriero

    destriero

    It’s one thing to work a spread or combo with a small gamma but timing on singles (calls) is far more important than rebates. If you’re filled just under the offer then the spread moved against you. I am always marketable.
     
    Last edited: Jun 4, 2020
    JesseJamesFinn1 likes this.

  5. If I make enough to move to Sparks, you got to promise to let me take you to dinner your choice of restaurant or you come trout fishing at my ranch in Steens Mountains(Blizten River) by Frenchglenn Oregon.
     
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  6. rb7

    rb7

    All the info about Exchange fees is located here:

    https://www.interactivebrokers.ca/en/index.php?f=commission&p=options1

    But I guess that you already knew this...
     
    JesseJamesFinn1 likes this.
  7. mskl

    mskl

    My recommendation is to set up your smart order routing so it includes all the option routing algos.

    In the TWS
    go edit-configuration-orders-smart routing

    under Smart option routing Algorithms - click all the possibilities under Display

    Then when you create an order - you can change the destination from Smart to whatever you want.

    For example - if you are looking for the best rebate (providing liquidity) then use Smart MaxRebate. There are times when you will get filled no matter where you send the order so you may as well get the max rebate.

    If you are sending a marketable order then Smart MaxFill will give you a better chance at price improvement as IB tends to send your order to the best PI exchanges.

    Anyhow - it isn't perfect but you will soon see what IB's best algo's are in each situation.

    There are times when you have to pay more commission. You may have to direct your order to a particular exchange that all the smart order algos ignore just to get a better fill. Its all about experience.

    best of luck