Order Types

[ScottMcNab]

I was looking over market if touched orders on the IB website after Nick mentioned it in the call last night. I was wondering if “limit if touched” may also work in substituting for current buy limit orders ?
ie
instead of submitting buy limit orders to market before the open (requiring margin acct) could place a limit if touched order…hopefully this could be done in a normal (not reg-t) acct as the orders are held until the trigger is reached and then sent as each trigger is met…hoping (?) IB would stop placing any remaining orders once had reached 100% of equity ??

logic driving this is to be able to use buy limit orders in an acct used for smsf…so no margin

https://www.interactivebrokers.com/en/index.php?f=4985#auction

if this is a discussion better had offline in the form of a consultation (outside of mentor course) please let me know Nick and I will arrange a time….popped it here in case anyone else working through similar issues

[Nick Radge]

Some clients trading my HFT strategy without margin are using this technique. I’m unsure what success they’re having.

The orders can be placed.

The only issue is that when the price is touched the order becomes a MKT order and will execute at the next available offer price. In larger cap stocks this may not be much of an issue. However, in smaller caps there may be a reasonable spread meaning the fill is some distance from the wanted limit level.

[ScottMcNab]

Isn’t that the “market if touched” Nick ? From what I can see “limit if touched” triggers a buy limit order or have I mixed it up ?

[ScottMcNab]

[Nick Radge]

oh – you’re right. I’ll shut my trap and read before replying :unsure:

Looks like a plan to me.

[ScottMcNab]

Just tried on ASX and worked ok..I have tried to contact IB to see if can be used in cash account as well as regT but message center temporarily down for maintenance …will post once have reply

if it cant be used with cash acct then maybe could open regT account for smsf and just not trade on margin I guess if regT was needed to use LIT order

[TrentRothall]

Is the only difference between LIT and LMT orders that a LMT order is sent to the exchange once submitted on tws where a LIT is only sent to the exchange once price trades at the limit?

[Nick Radge]

LIT should be ok with a cash account because the order is kept on the server and not sent to the exchange

[ScottMcNab]

[ScottMcNab]

So far so good…should be much cheaper to modify existing api…just need to change order type from LMT to LIT and need extra column for trigger price to be included…rest can stay the same…will ask Levente for a quote

[ScottMcNab]

Nick Radge wrote:

LIT should be ok with a cash account because the order is kept on the server and not sent to the exchange

Been going backwards and forwards through message centre as IB now saying credit check is done when LIT orders are sent to IB and not when limit order triggered and sent to exchange…so I could only place 20 LIT orders (at 5%) in a cash account…of which only a few may be triggered…need to be able to place multiple LIT orders and then have the API (and IB credit check) to then limit to 20 positions at 5%…confused that it works for clients of yours Nick with MIT but would not for LIT orders…anyone else you recommend I contact Nick

[ScottMcNab]

This is the question I asked:

[Nick Radge]

Well, I don’t know. I have never used those order types myself. My understanding is that the orders aren’t sent to the exchange and the credit checking only kicks in when they get routed.

What I would suggest is try it and see if it works.

[ScottMcNab]

Thanks Nick

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