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Showing content with the highest reputation on 01/21/17 in Posts

  1. I have the same version. Check out the following setting:
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  2. And here is the link to TWS manual https://www.interactivebrokers.com/en/software/tws/usersguidebook/configuretws/configure_smartrouting.htm And the explanation:
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  3. @ tradelon Only for those using TWS from Interactive Brokers: In the TWS Configuration menu you will find " Smart Routing". If you click on this the smart Routing configuration will open. At the lower end there is the "Smart Option Routing Algorythm". Here you can configure your prefered Routes for Option-Orders. For example: If you choose "maximize Fills" you must count with higher commissions but perhaps faster fills. For exact explanation you must read the TWS Manual or search the IB-Homepage. aiti
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  4. I'm often asked how to get good fills with IB. So first, it is important to understand that getting good fills is critical in short term trading. Trading is a business. As in any business, prices are involved, and our profitability of success will always depend on our ability to get good fills. Every business revolves around this cost equation.If getting good prices was so easy, there wouldn't be any markets/any business... Before placing a trade, always observe the prices for a while. Here is an example how prices are presented in IB: This is an example of a calendar spread where the mid of the long leg is 11.25 and the short leg 10.25. So the real mid of the spread is 1.00. However, since the bid/ask of the spread is 0.90/1.40, IB presents the mid of the spread as 1.15. This is not correct. Please always calculate the real mid based of the mid of the individual legs. After you observe the mid for a while, place an order slighly below the mid (for buy orders) or slightly above the mid (for sell orders). When you place GTC order, sometimes It doesn't get filled. While if you change it into a limit order (during active market hours), sometimes it gets filled even though the price is same as in GTC. Sometimes just "pausing" the order and resubmitting it would get filled. "Playing" with the order by changing it by 1-2 cents sometimes helps. Changing the order from SMART to specific exchange, for the same price, can work as well.
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  5. I could not find out how to do it with IB. Maybe opening a ticket with IB (works better than a phone call) will help.
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  6. Thanks Marco. I looked deeper into this over the weekend and figured out what happened. In this particular account, I only trade options so never really put much thought into the impact of dividends on stocks. However, around May 8th I was in a calendar trade for IBM, and the short legs were early exercised by my broker. So I woke up that day with 1600 shares of IBM in my account, along with 16 long options from the calendar trade. What I didn't realize at the time was that the stock apparently went ex-div that day, because I'm now on the hook for the dividend on 1600 shares -- about $1520. Fortunately IBM rose that day, allowing me to reduce the sting a bit by selling the long options for a nice profit. But nowhere near enough to cover the dividend I'm on the hook for. A pretty painful lesson that I should never be short an option on the ex-div date. Pretty brutal.
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