Today I placed a market on open order (OPG) in my TWS for 50 SNPS shares at SMART. It was executed at 09:30:00 on ISLAND at $43.18. If you look at the IB-charts of SNPS it says, the open price was $44.06. Thats about 1$ difference ! WHY ? Can I ask IB to recompensate me ??? Prisma
There are two causes for this poor execution. The fact that it was for only 50 shares and it was a MOO on nasdaq. Since there is no official market on open execution for nadaq stocks, IB simulates this by sending out a market order right at 9:30:00. Well, at this split second market maker supersoes quotes most likely were not up yet, IB was early by probably a few miliseconds. That only leaves ECN quotes and many ECNs dont' accept odd lots. So IB had to fill you with the best island bid. In the future, I would avoid MOO on nasdaq stocks, very unreliable since there is no guarantee that every price will be present right at 9:30am.
Never use market on open orders for a nasdaq stock. IB gained no profit from your trade, they have no reason to compensate you. THey sent out a market order at 9:30 and the best price was at island, which is what u wanted. We have all learned these lessons, most of my lessons cost me alot more than $40. Good luck
Hi. Thanks for your replys ! How do you think about a MOC (Market on close) at Nasdaq ? Would this be more reliable than MOO ? With a smaller chance for this kind of mistrade ? Prisma
Why would you do this on NASDAQ? On Nasdaq a simulated MOC order is nothing more than sending amarket order at exactly 4PM. On the NYSE you may get some price improvement due to order imbalances. There is no such thing as order imbalances on NASDAQ.
There are people out there who swinging stocks for 2 - 5 days and don't want to sit the whole day in front of the computer and watch every tick. IB offers a great tool to use automated trading!!! Therefor I use MOC and MOO orders. happy labor day