Placing a Limit Order with IB

[rejhero 0]

I am new to IB and am looking at their trading platform.  If I want to place a limit order for a straddle, the screen gives me an option of going plus or minus the market price.  It doesn't let me specify a limit price directly (which seems strange).  Anyway, if I want to place a limit order that is below the ask by 10 cents, I would enter -0.10 as the limit?

 

Thanks for the help.

[Maxtodorov 19]

Which tool in IB are you using? I found the spread builder to be the best tool for spread trading. 

Overall the price in IB is what you enter. Also, its important to know that you can accomplish the same transaction by both selling or buying. 

Assuming you want to by a spread of XYZ, entering -0.10 would accomplish nothing, as you are asking to sell for credit. In other words you are accepting 10 cents to also get the spread. 

I enter the price that I am willing to pay. 

 

Bottom lime, call IB and ask them to walk you through. They would do that....

[rejhero 0]

Thanks for the reply.  I'm using TWS.  I will call them and ask about it.

[Maxtodorov 19]

One of the tools in TWS is spread builder.... try it...

[Kim 7,871]

Check out this topic.

[praveen 3]

Hi Kim,

 

I am needing some additional guidance.  For the RL Aug 21 trade that took place recently, you had first opened a straddle for $8.50 debit.   I was able to replicate the steps in the Classic TWS finally, but still have one question.  Should the limit price be 8.50 or -8.50 since it is debit?

 

Also then you mentioned you made an adjustment (rolling the calls up) for RL.  I assume that is a vertical spread just like explained in your instructions.  It's price was $2.55 Credit.  So what should its limit price be?  Should it be -2.55 or 2.55 since it is a credit?  Also is it possible that the Vertical spread that you mentioned is no longer available to execute on because currently it does not give a 125 call option to sell when you try to buy a 130 call? 

 

Is there already an explanation somewhere on this forum where it mentions why you rolled up the calls and when you choose to do it? 

 

For the SPX trade, the combo selection interface looks slightly different and I have some doubts as follows: 

a) First there is a Trading Class which has options for SPX or SPXW.  Which is the one I choose (if any)?  (I notice each leg has a different Trading Class)

 The interface also has a Front and Back filtering criteria.  Is Aug 20 considered the Front and then Aug 14 the Back? 

c) Also it has a Duration option to filter with?  It seems the duration for this trade is 6 days, correct? 

d) I found the strategy titled "(1) Aug 14 '15 + (1) AUG 20 ' 15 2105 Call" which matches your alert. However, the price again is a debit of $2.80.  So do I enter the Limit price as $2.80 or -$2.80? 

 

Thanks,

Praveen

[Kim 7,871]

For RL straddle, you need +8.50 since it's a debit. For the adjustment, you build it as debit spread (buy 125, sell 130) and then sell it for +2.55. Since you sell it with a positive number, you get a credit.

 

For SPX trade, you don't select class since one is SPX and second SPXW. Just select expirations. Duration is 6 days.

 

Buying for a debit will always be positive number. 

[bam1960 53]

I may be I the wrong topic but someone was asking about GTC orders. What I like to do on straddles particularly is enter the order as GTC and then pause the execution in case the underlying gaps and then can adjust the price and execute at a better price. When you pause it keeps the order on screen so it can be monitored. Works for me anyway.

[praveen 3]

Hi Bam1960,  How do you pause execution in IB? 

[bam1960 53]

Enter order on TWS strategy builder submit GTC order. It will be in your orders window right click and in drop down box choose pause execution.