Hi there, just wanted to make some of ASF posters aware of this issue, maybe this has come up before but i haven't seen it.
Be aware if certain stocks move greater than 10% of their open/close during the day, IB operates an automatic filtering system to delay order going to market. They appear to have an algorithm that automatically sets this up. My description there is a simplification of course but essentially they have automatic filtering system that delays order entering the market to keep the underling from moving to far and too fast
Potentially this is disasterous with day trading more speculative and even non-speccy stocks.
In my own case, i'm a recent new user of IB and do enjoy the cheap brokerage and other order types that the mainstream broker charge a motza for. But in this particular case my sell order would not execute.
I bought 56c stock and it quickly went to 63 or 64 c so i set a sell stop at 60c anyhow it dropped below this and order appeared to be acknowledged but it never executed. I thought something was wrong with the order so tried it again, then stop limit, then sell limit and sell market, still wouldn't sell the damn thing. Never appeared in DOM either
The upshot - appears that with fast moving stock, your order may not execute and you will have to call a designated represenatative to have your order executed for you. How likely is that to happen, They then have to agree to moving the floor/ceiling for that stock to enable your order to execute. My order didn't operate all afternoon.
I guess there had to be a catch with the cheap brokerage, and i guess i have just found it.
Pity, i'm now down a shed load because of this, i should have sold at a small loss instead of a big one, i dont blame this on IB as i could have sold a day later, PITY though because if IB had of worked i would have made a nice profit.
instead another one bites the dust
any others come across this one? any success getting the designated trading representative to alter the floor/ceiling???