Buying credit spreads at Mark limit price

Discussion in 'Options' started by Mnewton, Oct 12, 2019.

  1. taowave

    taowave

    FWIW,I traded with IB and decided to set up an account with TOS as I am tired of paying 6 bucks on butterflys over at IB..But here is what i found,and if I am wrong,happy to be corrected. If you are trading a spread,TOS routes the order to the exchange with the highest bid/lowest offer..Great if you are a market taker..However,if you split markets,i.e enter a .35 bid for a fly that is quoted .10 bid at .70,your order goes the exchange with the best offer,but stays there.The order is not rerouted to another exchange if a .40 seller comes in on another exchange.In fact,a seller came in and offered my spread on another exchange at .35 and I was not filled.I only knew as I was watching my spread market on IB...If I am not mistaken,IB reroutes spread orders to the "best" market....While I love the commision structure over at TOS,I do not like that method of execution..Any one have any thoughts on IB vs TOS and the execution of spreads?
     
    #11     Nov 21, 2019
  2. FSU

    FSU

    Try directing the spread to the CBOE. You will generally get the best fill here.
     
    #12     Nov 21, 2019