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cwerdna

Trading and getting fills with Interactive Brokers

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I hope I am asking this question in the correct forum......

Has anyone ever examined the wide variety of 3rd party software, which is listed under "Investors Marketplace"/ "Software Vendors Marketplace"?

There is a pretty large amount of programs that are listed by "category" (ex. "options", "order management" etc.), and also each one is rated with votes from the IB customers.

I was wondering if anyone here has used any of these programs and, if so, are there any favorites , that really are helpful?

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I thought this might be of interest to any IB traders.

On the other hand, I might also be the only one here who didn't know this until now.

I was just on the phone with IB tech support, because some of the numbers in my account didn't seem to make sense.

For example, there is no margin requirement on a long debit vertical spread....yet I was showing a margin number.

I have always been under the impression that there were only 2 ways of margining.

1- Reg-T for equity products

2- Span for futures products

But, I just learned that there is a 3rd, entirely different margining system for any volatility related products.

Even the tech support guy at IB could not explain how it works because it is so complicated (according to him)

But, as an example, a straight out long , debit, vertical, in any volatility related product, will generate a margin requirement number.

So, there are now 3 margaining systems to be aware of.

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I'll ask it here:

 

How to properly set One-Cancels-the-Other Order in TWS?

Let's say I bought a position for $4

"Sell when $3 (loss) or $5 (gain)"  Do I need to chain orders? or there is something more simple?

 

Edited by IgorK

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I mentioned this 2 days ago, because, I hate to admit, I only learned about then.

It happened back in late August.

The may only be relevant to those who trade at IB.

But, it is likely that other brokerages might have followed the lead on this , and be implementing the same formulas.

I posted the full article below, because it does need some explanation.

I also included the link.

Basically, VIX, and all volatility related products will no longer been margained by the normal Reg-T rules that apply to all equities, etf's, and their options.......

https://trade.collective2.com/IB-volatility-margin-increase

You should be very aware of these changes because, when you are placing a new position....if it involves volatility products, you can no longer make the same assumptions about the effect it will have on your margin.

I'm sure many of you already know about this.

 

Special Notice: Volatility Product Margin Increase

IB-logo-300x50.jpg

Volatility Product Margin Increase

Interactive Brokers Client Services: August 4, 2017

VIX (the CBOE Volatility Index) has established new all-time lows over the course of the past month. The price dynamics of that product are such that it can have very large relative price increases over a very short period of time base on news and other market factors. In recognition of the special risk of sudden, large increases in market volatility, that is inherent in Volatility Products such as VIX, Interactive Brokers will put into place greater margin requirements for Volatility Products after expiration processing on Saturday, 19 August. 

IB’s margin policy will be to consider market outcome scenarios under which VIX might rise to a price of 18 (even when it is currently priced much lower) and under which the other Volatility Products could rise to proportionately similar degrees. If you have positions in Volatility Products that have risk in large upward moves of market volatility, then your margin may increase significantly.

In the interim IB will with immediate effect increase its Initial Margin requirements on Volatility Products to a degree consistent with the upcoming 19 August increases in Maintenance Margin.

You can use IB’s Risk Navigator SM to understand how the Maintenance Margin will change for your current positions or to see what the Maintenance Margin will be for any portfolio that you would like to construct. Instructions are provided at the end of this email.

You should exercise care to plan your positions so that they will be in compliance with the new margin policy by the effective date of 19 August. Some of the factors that you should consider are listed below.

• A number of current contracts will expire between now and the effective date. Depending on the positions they may increase or reduce your upcoming margin requirement.

• Some Volatility Products have “ultra” and “inverse” characteristics. Ultra products are expected to have greater daily returns than normal products while inverse products are expected to have returns that are of the opposite sign to normal products. It is therefore expected that an increase in market volatility will result in a decrease in the price of an inverse volatility product. As a consequence, for example, under the new policy the margin on a naked short call will increase for a normal product while the margin for a naked short put will increase for an inverse product.

 

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Hi! If you buy options based on IV then when you do you close your positions - when IV opposite values are reached or you check first the underlying stock chart and the option price? Thanks
Edited by kesh

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A technical question if anyone can help...

I rolled the MSFT and IBM straddles with rolling function of TWS. Following succesful filling the new positions are shown as individual options, not combos anymore. Any idea if I can make them combos again or it isnt possible???

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35 minutes ago, Tniko said:

A technical question if anyone can help...

I rolled the MSFT and IBM straddles with rolling function of TWS. Following succesful filling the new positions are shown as individual options, not combos anymore. Any idea if I can make them combos again or it isnt possible???

If in Classic TWS I go to option combos and  try to build and add a similar combo (straddle or strangle) and usually it pics it up as a position.

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5 minutes ago, IgorK said:

If in Classic TWS I go to option combos and  try to build and add a similar combo (straddle or strangle) and usually it pics it up as a position.

I do the same think on the main quote page.

You type in the underlying symbol ( once you already have the options you want to use on the screen), then choose "combinations".

If you then go to the 3rd box,....the one that does not have the pre set strateties, you can then pull and drag each option , that you want to be part of your position, into the box, and create a symbol, for that combo,that will now appear on your quote screen,and can be traded (bought and sold), just like any other item.

Just be careful,...on the left, make sure that you have "buy" and "sell" setup correctly for each option in the position.

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16 minutes ago, Tniko said:

Thank you. However, this creates new line, it does not consolidate my existing positions into combos...

Yeah, after a roll of one or more legs I have not found a way to re-create the new spread in the portfolio view.  Frustrating.

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17 minutes ago, Tniko said:

Thank you. However, this creates new line, it does not consolidate my existing positions into combos...

Yes it does.

Once you have set it up, and then buy , or sell, the item,...it will show, on the left hand column, the positions, in that spread, that you are holding (long or short)

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2 minutes ago, Darcy MacDonald said:

Yeah, after a roll of one or more legs I have not found a way to re-create the new spread in the portfolio view.  Frustrating.

True. Once you have altered the original position, then it now becomes something different. and will appear differently.

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I posted this question on another forum and was told to post here..so here goes..

When you roll a straddle, selling off a side to create equal strikes, do you bust up the previous spread and create a new spread with a STO of your current position and then a BTO of your new position? This creates a new spread that is now separate from the initial spreads? Not sure how that looks and then how to sell them all without getting hit with multiple commissions...Do you have to then sell off the two spread separately or does it get recognized as a single transaction?

I am using OH (which I hate and am switching to Tastyworks).

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No, you roll one side only.

For example: if you have 100 straddle and the stock moves to 102, you sell 100 call and buy 102 call, so now you have 100/102 strangle. Since you sell more expensive call and buy a cheaper call, you get a credit. It basically like selling 100/102 call credit spread.

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1 hour ago, Kim said:

No, you roll one side only.

For example: if you have 100 straddle and the stock moves to 102, you sell 100 call and buy 102 call, so now you have 100/102 strangle. Since you sell more expensive call and buy a cheaper call, you get a credit. It basically like selling 100/102 call credit spread.

It's just a simple 100/102 vertical that you are selling for a credit.

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7 minutes ago, Sirion said:

Does anyone know if there's a way to add a custom note on a watchlist? It would be very convenient to put a price target

For options combo or for a stock?

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Just now, IgorK said:

For options combo or for a stock?

either would work, as I typically would have the underlying on a line next to the options combo for quick viewing

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Just now, Sirion said:

either would work, as I typically would have the underlying on a line next to the options combo for quick viewing

You can create an alert for a stock price I think...

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1 minute ago, IgorK said:

You can create an alert for a stock price I think...

I don't know how I missed it, but there's a right click - add new note function on the watchlist. I swear I spent like 20 minutes fiddling around with it on Friday and gave up. So obviously after making a public post, the next time I glance at it it's BOLD FLASHING RED right there. 

Derp.

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Based on what I read on IB's website, if I fill in an account opening paperwork, I am allowed to start paper trading. After I fund the account, I will then get to live trade... obviously!

My question is:

1. If I don't fund my account, how long can I have the paper trading account?

2. Does the paper trading account have live streaming quotes or are they delayed?

In reality, I am just trying to find a way to plot the intraday charts for mainly calendar spreads. I trade with TT and don't have that ability. I also don't need live data, I can just plot the intraday charts at the end of the day and check what the general minimum and maximum values of the Mid prices. If someone knows a better way that is free, please let me know.

Thank you.

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8 hours ago, Maji said:

Based on what I read on IB's website, if I fill in an account opening paperwork, I am allowed to start paper trading. After I fund the account, I will then get to live trade... obviously!

My question is:

1. If I don't fund my account, how long can I have the paper trading account?

2. Does the paper trading account have live streaming quotes or are they delayed?

In reality, I am just trying to find a way to plot the intraday charts for mainly calendar spreads. I trade with TT and don't have that ability. I also don't need live data, I can just plot the intraday charts at the end of the day and check what the general minimum and maximum values of the Mid prices. If someone knows a better way that is free, please let me know.

Thank you.

I have been with IB since they started.

My memory is vague on this,and things very well might have changed, but, I do remember a time when you can open a an unfunded account for 45 days.

Then it had to be funded.

But, like I said, that was a very long time ago, and things could easily have changed.

I think TOS allows you to have an unfunded account forever, with live data.

Are you saying that TT does not have any charting ability?

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3 hours ago, Bull3t007 said:

Live data will cost you money, delayed I am not sure. I know IB has an inactivity fee of 10 dollars a month. 

That's true, but the inactivity fee is waived if you do , I forgot, either $30 worth of trades, or 30 trades.

I remember the number 30, in the fee waiving process.

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51 minutes ago, cuegis said:

That's true, but the inactivity fee is waived if you do , I forgot, either $30 worth of trades, or 30 trades.

I remember the number 30, in the fee waiving process.

The 10 dollar is just for inactivity, so 10$ worth of commission erases the fee. 5$ commission and you pay the remaining 5$ fee.

 

That 30$ fee your talking about is actually on some data fees that get waived when you trade above 30$ commission. 

 

 

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9 hours ago, Maji said:

Based on what I read on IB's website, if I fill in an account opening paperwork, I am allowed to start paper trading. After I fund the account, I will then get to live trade... obviously!

My question is:

1. If I don't fund my account, how long can I have the paper trading account?

2. Does the paper trading account have live streaming quotes or are they delayed?

In reality, I am just trying to find a way to plot the intraday charts for mainly calendar spreads. I trade with TT and don't have that ability. I also don't need live data, I can just plot the intraday charts at the end of the day and check what the general minimum and maximum values of the Mid prices. If someone knows a better way that is free, please let me know.

Thank you.

I believe you can use that charting software for spreads to track their price on their demo account. I was trying to get it to work and found it a bit clunky. I’m not sure if that had anything to do with the fact that it was a demo account, or operator error. Probably the latter. IB stated to me I could use the demo account for as long as I wanted and it doesn’t expire. 

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2 hours ago, cuegis said:

I have been with IB since they started.

My memory is vague on this,and things very well might have changed, but, I do remember a time when you can open a an unfunded account for 45 days.

Then it had to be funded.

But, like I said, that was a very long time ago, and things could easily have changed.

I think TOS allows you to have an unfunded account forever, with live data.

Are you saying that TT does not have any charting ability?

TT does not have charting of spreads... they are “working “ on it is what I hear from their customer support. 

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1 hour ago, Maji said:

@Rob by demo you mean paper trading account?

Yes. But I believe that expires, so when the start up icon boots up, there is an area that says demo account, hit that link.

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I am unable to submit an order for closing a 7:2 hedged straddle (as one order), I get the following error:
image.png.dec7436356fd6ef02267d7997edcc6ef.png

The weird thing is that I can issue such orders with no problems for hedged straddles with less legs, for example 6:2 or 5:2.
I'm not aware of a "Trading Access" section in the Account Management. There is one called "Trading Permissions", but I couldn't find any setting there such as "maximum number of legs per combo". There is such a limit but not in the Account Management. It is in TWS's settings under Presets / Combos / Precautionary Settings / Size Limit but I've upped and also disabled that and nothing changes, I get the same error when trying to close the 7:2 hedged straddle.

Any hint would be highly appreciated.

Edited by BlackBat

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Could be a bug in their algorithm. You can try to close 6:2 and then close the remaining straddle.

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Dear IB folks.  I re-opened my account with IB after several years.  I've been using TOS instead, and I've gotten used to the platform in TOS.  The main issue with IB is that I can't see which contracts are working by looking at the options chain.  In TOS, there is a little icon that says "buy" or "sell" next to the contract in the options chain.  For those of you have have many trades working, how do you keep track of which strikes in the chain have trades working (not filled)?  I would appreciate any help.

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Forgive me if this is the wrong topic. Does anyone know if it's possible to set the defaults this setting refers to:

https://www.interactivebrokers.com/en/software/tws/usersguidebook/configuretws/charts_settings.htm#XREF_83067_What_to_show_when

by contract type? When I have a chart for an option or spread, I'd like to show the midpoint automatically without having to go into "Chart Parameters" > "What to show" > "Midpoint" each time, but without actually selecting "Retain Current" in the link I posted (so that I see trades if I select a stock for that chart, etc.).

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