Can't buy and sell same contract (IB)

Discussion in 'Interactive Brokers' started by TraderSU, Dec 10, 2009.

  1. Say if I'm trying to submit following order.

    DXD JAN 30 CALL -- BUY 1.15
    DXD JAN 30 CALL -- SELL 1.45

    I want to submit both side of orders and relax but IB has problem with it. Since I already have a pending buy side order on same contract they won't accept your sell order.

    Bad - Isn't it?

    How do other brokers do in similar situations.
  2. Can't you use an OCA order?
  3. MTE


    You need to link the two orders using One-Cancels-Other (OCO) function.
  4. Say I've 10 contracts with avg of 1.30 ; and can't sit in front of computer whole day. This is exactly what I want.

    - Buy 5 more if I can get 1.15 execution.
    - Sell 5 if I can get 1.45 execution.

    Your suggested OCA will cancel other order, which is not what I want. Also IB will post me a cancel-fee when other order cancels so I usually leave them open to expire at day end.
  5. I don't trade options, but I have no problems at all entering buy and sell orders simultaneously for futures. Doesn't have to be OCO either.

    Unless there's something about options I don't know about, it might be that there's something about the way you are entering the orders that's wrong.
  6. I do this all the time in EQUITY. They have some weird restrictions on option contracts.
  7. The option exchanges prohibit you from "acting like a market maker". Thus, you can't make a market on both side of an option contract at the same time. This is a long standing policy.
  8. Hehe - Only they can rob people. I can't take advantage of this spread.

    IB is very trader friendly so I was truly expecting some screwed up exchange policy behind this restriction.

    Happy trading all :)
  9. gaj


    and, tradersu, if you cancel an options order, you get charged $1 / contract.

    some brokers (which charge more than IB) eat the cost of that. IB passes it on. i'm fine with IB passing it on, but it's pretty awful that thee xchanges have decided "we" can't cancel contracts without a fee, or have buy/sells on the same contract.
  10. That is why I either execute market order or leave my day order it open and let it expire. Other trick I do is to make two or more lots. Say my target buy is 10 contracts at 1.85; so I'll execute 5 contracts at market i.e. 1.90 and other 5 at 1.80 and wait. Sometime when I'm not desperate for fills, I'll so 10 @ 1.85 and relax.

    Options market is a bigger SCAM than future and equity market.

    These rules do not make sense. Why can't I compete with MMs and take advantage of this bid-ask spread?

    But what can we do? Accept it, find ways around. Fight for survival.
    #10     Dec 10, 2009