Executing Orders in Interactive Brokers

Kim · January 14, 2016

This demonstration shows how to execute some of our trades in Interactive Brokers.

Download video:

Executing Orders in Interactive Brokers.wmv

January 14, 2016

very nice, Kim

I use the TWS for several years. But since I did not know the RIC, I had no clean idea how I could implement this in the TWS. Now everything is clear.

Thank you very much

eric nyc · January 14, 2016

Any chance you could do one of these explaining how to roll in IB?

Kim · January 15, 2016

Are you referring to straddles?

eric nyc · January 15, 2016

Are you referring to straddles?

Yes, but then I discovered the top secret "right click on the leg" function. Not sure why that hadn't occurred to me before. I had been toying with the Rollover tool which seems very counterintuitive. Edited January 15, 2016 by eric nyc

femape · January 15, 2016

Thanks Kim,
this kind of videos are really helpful. I'm a newbie in Options and I started with TWS. The new version shows you the mosaic view and gives the impression that the "classic view" is old, but now that I see, I think it is a simpler and more effective way to use it.

craigsmith · January 21, 2016

Thanks Kim, very helpful.

izzo70 · May 29, 2016

This was extremely helpful. So far the most difficult thing about steady options is the IB TWS for desktop and Ipad. I can spend countless hours figuring out the strategy. Even if i understand the logic behind the trade, and am ready to pull the trigger, if i dont know how to do it on IB whats the point. The education they provide on their site is not very good and doesnt deal with allot of what were doing. At least thats what ive found so far. A couple more hours of these IB webinars would be great.

Thanks,

Paul

sa1927a · June 20, 2016

I second Paul's post. It would be great to get videos on opening and closing the trades.

Thanks,

Sanjay

Kim · June 20, 2016

Please let me know what would you expect to see that is not covered in the current video.

pintodave · June 21, 2016

Since this is about IB order execution, have any of you found good videos for the TWS mobile platform? I found this one on IB's youtube channel, it is a good introduction but I'd like to find one going over complex order entry, etc...

Bschulz · February 4, 2017

On 5/29/2016 at 3:52 PM, izzo70 said:

This was extremely helpful. So far the most difficult thing about steady options is the IB TWS for desktop and Ipad. I can spend countless hours figuring out the strategy. Even if i understand the logic behind the trade, and am ready to pull the trigger, if i dont know how to do it on IB whats the point. The education they provide on their site is not very good and doesnt deal with allot of what were doing. At least thats what ive found so far. A couple more hours of these IB webinars would be great.

Thanks,

Paul

Yikes - after watching this video, the software looks very badly designed. I realize just how spoiled I've been working with TOS for the last few years. I'm looking to move away...the pricing with IB looks appealing, but their software looks horrible.

greenspan76 · February 4, 2017

7 hours ago, Bschulz said:

Yikes - after watching this video, the software looks very badly designed. I realize just how spoiled I've been working with TOS for the last few years. I'm looking to move away...the pricing with IB looks appealing, but their software looks horrible.

I've read these kinds of comments before, so it could just be that I'm weird, but I think the TOS vs IB software thing is really a matter of the way your brain processes information. I started using IB over 6 years ago and found it pretty intuitive. Once I used it for a while, I tried TOS and couldn't figure out how to do anything I wanted to do. For example, I spent over an hour trying to figure out how to select a calendar that wasn't one of the predefined time periods TOS brought up. When I first used IB, it took me 5 minutes to figure out how to use Option Trader and also to discover just typing in the symbol brought up choices that allowed me to quickly set up the trade I wanted. So many people have told me how much better and more powerful TOS software is than IB, but all I know is that what took me an hour to learn on IB took me 5-6+ hours on TOS.

Kim · February 5, 2017

@greenspan76This has been my experience too. From time to time I hear negative comments from users who tried to switch from TOS to IB. There is no doubt that those platforms have completely different design, but I strongly disagree that IB platform is badly designed. Sure you need some learning curve, and once you are used to some concept, it is difficult to make a mental switch. I assume the same would be true for users who try to switch from IB to TOS - but you rarely hear those complains because for someone who has been with IB for a while, there is really no reason to switch to TOS. I have been with IB for 10+ years, never had any issues with the platform.

Javier · February 5, 2017

I've been in the computing sector for decades, and seen many many apps, and You must accept that IB is, in my view, very powerful as you can configure everything, but with a not user-friend graphic design at all. This makes the platform very useful for very experienced traders. Maybe you recall old Lotus 123 worksheet compared with current Excell, it is something similar. I was able to operate old 123 many times quicker than excell using the keypad doing the same work, but 123 is residual.

There must be something, when most of us operate with IB for commisions, but use TOS or ONE to visualize a new strategy.

i could enumerate a number of IB tools that seem to be designed for a NASA engineer, rather than a medium level trader, just to mention one them, the activity reporting system, with hundreds of configurable one hundred pages reports.

PD: I personally use IB for commissions and the conservative part of my portfolio with no much need of monitoring (shares, covered calls, IC and long time option spreads), Tradestation , something in between IB and TOS, (when I need more active monitoring, like SO options strategies and specially futures) and TOS for a "light" backtesting. I very likely end in ONE.

.

Edited February 5, 2017 by Javier
Clarify

kDiqq · February 5, 2017

I recently switched to IB from OX (but used TOS). OX had a *killer* trade ticket that was super easy to use. There is for sure a learning curve on TWS, but I actually found it easier to watch videos and learn using the mosaic layout. A lot of the windows they have offer some awesome information that you can keep front and center, unlike TOS. I know in Kim's video it shows classic TWS (which is great, don't get me wrong), but for TOS migrants, I think the mosaic layout might be a bit easier to learn. Just my .02

Suli · February 6, 2017

@Kim - Is there a video how to roll the legs in a option combo? so that you don't loose the combo and end up with the individula legs. It would be great if you could do something like this.

Darcy MacDonald · February 12, 2017

On 2/6/2017 at 9:31 AM, Suli said:

@Kim - Is there a video how to roll the legs in a option combo? so that you don't loose the combo and end up with the individula legs. It would be great if you could do something like this.

I've found that when I roll it breaks up the combo only on the day of the trade. Next day it's back in the combo.

Antonio · March 23, 2017

A question on InteractiveBroker trade execution :

I am trying to close a RHT April 28 / Mar 31 $85 put calendar... however, when I try to place the order to:

Sell Apr 21 $85 put
Buy Mar 31 $85 put

... webtrader does not allow me to do it for a "credit", only "debit".

In order to find a shortcut, I tried to place a negative debit order (ie: debit: -$0.4) but IB webtrader says that the amount must be positive.

What am I doing wrong? No matter what I try it always appears as a debit.... and I obviously ainm for a credit as it shows a 35% profit.

Thanks

Paul · March 23, 2017

1 hour ago, Antonio said:

A question on InteractiveBroker trade execution :

I am trying to close a RHT April 28 / Mar 31 $85 put calendar... however, when I try to place the order to:

Sell Apr 21 $85 put

Buy Mar 31 $85 put

... webtrader does not allow me to do it for a "credit", only "debit".

In order to find a shortcut, I tried to place a negative debit order (ie: debit: -$0.4) but IB webtrader says that the amount must be positive.

What am I doing wrong? No matter what I try it always appears as a debit.... and I obviously ainm for a credit as it shows a 35% profit.

Thanks

It happened to me a few times when I used Webtrader. Sometimes restarting Webtrader worked and sometimes building a different spread and then cancelling and trying the original worked. When that didn't work I had to open TWS and send the order that way. I eventually got fed up and don't use Webtrader anymore.

Antonio · March 23, 2017

25 minutes ago, Paul said:

It happened to me a few times when I used Webtrader. Sometimes restarting Webtrader worked and sometimes building a different spread and then cancelling and trying the original worked. When that didn't work I had to open TWS and send the order that way. I eventually got fed up and don't use Webtrader anymore.

Thanks for your reply... InteractiveBroker's customer support is helpless; instead I had to put a custom order.

AlexTrade · July 7, 2017

On 1/14/2016 at 10:22 PM, Kim said:

This demonstration shows how to execute some of our trades in Interactive Brokers.

Download video:

Executing Orders in Interactive Brokers.wmv

Hello Guys,
Im newbie and I dont know how to make this combination of orders
I need you help for executing the combo orders
( I mean Stdaddle + Short Strangle on Interactive Broker Station)

I created the orders by manualy ( Staddle creatin and after that ShortStarngle )
But as I undrestood the orders sholud be exectuted automaticaly (like one trigger other)

I sow Kim post (steadyoptions.com/forums/forum/topic/3027-executing-orders-in-interactive-brokers/#comment-53599)
about how to do it, but there is no explanation how to do both of them automatically .

Thanks

Kim · July 7, 2017

You do the straddle first, then sell the strangle.

More details: Short Strangles

dmeulmee · October 12, 2017

Hi @Kim, @Yowster,

Today I encountered the PDT rule. Actually it was very stupid. I lost my security code card but I was still logged on. After searching I couldn't find it and I decided to close my positions to avoid risk. I read a lot and it's clear it's allowed to only to have 3 daytrades in 5 business days.. Still I have following questions:

1. What's not clear to me is opening a straddle and selling a strangle on 1 day, is that considered a daytrade?

2. If I open and close a straddle on the same day. Is that one or two daytrades( 2 because of the legs)

3. I just had to request PDT reset, is that a big issue? (except 5 days not able to trade?)

Kim · October 12, 2017

1. No because it is different strikes and expiration.

2. One per leg (so two total).

3. No. I think it might become an issue if you do it too often, but once in a while shouldn't be a big deal.

dmeulmee · October 12, 2017

@Kim, Thanks for clarifying. Of course I found my security code card now. :Ambivalent:

rafa · October 13, 2017

3 hours ago, dmeulmee said:

@Kim, Thanks for clarifying. Of course I found my security code card now.

I suggest you to scan it, and have it on the phone, not the most secure method, but you'll have it when you need it.

clems · October 13, 2017

2 hours ago, rafa said:

I suggest you to scan it, and have it on the phone, not the most secure method, but you'll have it when you need it.

Better alternative: they have an app in the app stores that the client will request you to click on 'yes, login' in order to login. Would highly recommend this over an unencrypted digital picture of your card.

Djtux · October 13, 2017

7 minutes ago, clems said:

Better alternative: they have an app in the app stores that the client will request you to click on 'yes, login' in order to login. Would highly recommend this over an unencrypted digital picture of your card.

Thanks i just installed the app, a nice backup to that card !

rafa · October 13, 2017

thanks

dmeulmee · October 13, 2017

Thanks all for the tips 'n tricks guys. Installed the app, took pictures (it was brand new, I didn't even had time to do that), so I should be good now.

RedPiglet · December 20, 2018

I am totally new to options trading and interactive brokers. I am trying to place an order for the recent SO AAPL Feb 2019 Call Ratio trade:

Sell to open 1 AAPL Feb.01 2019 165 call
Buy to open 2 AAPL Feb.01 2019 175 call
Price: $0.05 credit

I want to use the strategy builder but I am not sure which one is for Call Ratio spread trade. Then, I do custom strategy but I cannot specify the limit price for each leg (is it correct?). I can only specify the limit price for the whole order (multi-leg). Is it expected? Please help.

Kim · December 20, 2018

Yes, it should be executed as one single combo order for a credit (as much as you can get).

sharpcheddar · May 5, 2020

Hi Kim, is there an updated version of the video? I am having trouble finding the combo selection on the new layout.

Kim · May 5, 2020

No, I'm still using the classic version.

betaboy3000 · July 29, 2020

Anyone have any idea how I can do a Funari-type order on US options using IB?

It's a limit order, with any remaining unfilled quantity resubmitted as a Market-On-Close order at the end of trading.

https://www.interactivebrokers.com.hk/en/software/tws/usersguidebook/ordertypes/funari.htm

Might be useful if I have a set target, that isn't reached, and I'm happy to close it pre-earnings close time.

Clay · July 31, 2020

I'm trying to figure out how to roll the short options on the ADBE NEHS from July 31 to Aug 7. It seems to only let me leg out on the individual short positions of the combo. Is there any way to group them together in Trader Workstation? I've spent a while trying to figure it out and looked on IB's website too. Thanks for any help that someone might be able to give.

Kim · July 31, 2020

5 minutes ago, Clay said:

I'm trying to figure out how to roll the short options on the ADBE NEHS from July 31 to Aug 7. It seems to only let me leg out on the individual short positions of the combo. Is there any way to group them together in Trader Workstation? I've spent a while trying to figure it out and looked on IB's website too. Thanks for any help that someone might be able to give.

One option is to create a custom 4 leg position. Another (simpler) is to close the Jul31 strangle first and then open Aug07 strangle.

Clay · July 31, 2020

Thanks, Kim. I've been using the mobile platform for about 4 years now, but have never used the desktop version. I finally just had to enter in the 4 leg position on the mobile platform. Having a hard time adjusting to the desktop. I appreciate the help.

aircal · August 1, 2020

I use the Strategy Builder on the option chain screen.

You have to be careful to select the correct strikes/expirations

Tom Vol · August 2, 2020

Perhaps a side question, but it fits the topic. Anyone knows how to recombine legs in Interactive Brokers TWS (e.g. of a hedged straddle) that get broken up on closing of any of short legs (or avoid seeing combos split). Rolling individual legs seems to be fine and the combo remains in one combo, but if I do anytihng else than rolling individual legs then the combo gets split, messing up the management and visibility of positions performance... Thanks

Markuse · August 3, 2020

12 hours ago, Tom Vol said:

Anyone knows how to recombine legs in Interactive Brokers TWS

If e.g. the NEHS is broken up I set up the new one (eg with 3 legs) with the strategy builder in the option chain. But unfortunately IB does not link this to my existing portfolio. Therefore I also copy the existing individual options in the lines below the new combo. If I close the combo I see also the individual options being closed (my security check) Regarding p/l tracking I just use my p/l excel.

I know that is not what you are looking for but at least it might be a work-around.

porgie · August 13, 2020

From the Horse's mouth

Best execution?

Another little-known aspect of zero-commission trading pertains to the execution of a given trade.

Before, when brokers charged commissions for each trade, they often were promising a best possible execution, meaning they prioritized time and therefore share price of a security. As zero commissions became industry standard, brokers now go for the cheapest option to execute a trade.

Steve Sanders, Interactive Brokers’ executive vice president of marketing and product development, said its zero-commission option — known as IBKR Lite — gets lower priority than its paying IBKR Pro customers for execution.

“If it’s IBKR Lite with zero commissions we do what the other brokers do, we send them off to a market maker just like everybody else and there’s payment for order flow that comes back and you may not get as good of an execution,” Sanders said. “If its IBKR Pro you’ll get better execution.”

Jesal · April 2, 2022

I'm new to IB and have setup market data already. trying to follow this video and could not figure out why I don't get the combination/option combos selection.

I've spent time searching but could not find anything, how do I get this option?

Sorry for the basic question, please help...

greenspan76 · April 2, 2022

@Jesal You should have an arrow at the bottom of that popup box that shows more options when clicked and it will have 'Combinations'. Once you use 'Combinations' a few times, it will show up without the need for clicking the arrow at the bottom. Here's an example of the arrow.

Edited April 2, 2022 by greenspan76

Jesal · April 2, 2022

Wow that's pretty hidden feature, at least to me lol

Got it now, thanks a lot for your help @greenspan76 much appreciated.

vineet · December 4, 2023

Thanks Kim. It's very helpful to see how you place / manage your trades.

Incidentally, I had just posted a request for tool suggestions that have a wish list of features. It would be helpful to know if you are able to achieve most of these things through TWS.

I do agree that TWS is very customisable. Will try to learn about it and set up a clean view like you. Do you use mobile app to open/roll/close positions?

Do you manually increase limit price (starting at mid price) till you get a fill? On spreads with 4 legs, you do this individually for each leg?

Edited December 4, 2023 by vineet
added question

Tomczek · April 16, 2024

On 1/14/2016 at 9:22 PM, Kim said:

This demonstration shows how to execute some of our trades in Interactive Brokers.

Download video:

Executing Orders in Interactive Brokers.wmv

In the "Combo Selection" I cant see any greeks. At least the delta would be important imo, no?

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