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Interactive Options Course
Lesson 2 of 16
When the investor selects a limitorder, they’re choosing to buy or sell shares at a specified price or better – that is the highest amount they’re willing to pay for their shares, and the least they’re willing to sell them at.
If the order fills, the limit order ensures that it will not be at a price less favorable than the limit price. However, it does not guarantee a fill – especially in quickly moving markets.
The order panel in IBKR Desktop can be populated by either clicking on a symbol in the Portfolio or Watchlist screens or typing in a symbol in the search bar. Once the symbol is selected the investor can click “Buy” or “Sell” to create an order window. In this example the investor chooses to create a “Buy” order and can select the quantity and whether to trade in shares or fractional shares if they have been enabled. The investor chooses 100 shares. Directly below are three order types; Limit, Market, and Stop. The investor chooses Limit and then can adjust the limit price in the line below. Next the investor selects the Time-in-force by clicking on the box. They can select Day, Good ‘Till Cancelled, known as GTC, Overnight, or Overnight and Day. For more information on these terms please see the IBKR Traders’ Glossary. The investor can also select whether to have the order active outside regular trading hours by checking the box below.
When the investor is satisfied with the order inputs they can either click on “Preview” to see a breakdown of the order as well as its effect on margin, “Save” to save the order to be transmitted later, or “Transmit” to send the order. The investor chooses “Submit Buy Order” and the Order Confirmation window appears. Once satisfied they click “Transmit” to send the order. Once sent if not filled, the investor can view trades, modify the order, cancel order from the Order Confirmation screen. If the investor clicks on the three dots next to Cancel order they can Pause execution, Duplicate the order, or create the opposite order ticket.
Limit orders may not execute, or may not fully execute, when you specify your Limit price. While that is a restriction of this order type, some investors may prefer that outcome to using a market order that fills regardless of price.
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The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
If I place an ETF sell or buy order outside trading time does the order need the trading hours to open to br executed? 2. Why when I place a sell order with a definite price I get a pop-up saying it is not
Hi Adnan, thank you for reaching out. By default, all orders are set to work only during Regular Trading Hours (RTH).
Generally “RTH” refers to the primary trading session for a particular exchange or region (e.g. US equity markets RTH are from 09:30 to 16:00 ET).
To set an order to work outside of regular trading hours (Outside RTH) when available, see the relevant, platform-specific, articles below.
Yes, you can trade ETFs outside of RTH. For instructions to trade outside regular trading hours in TWS, please review: https://www.interactivebrokers.com/faq?id=27271538
For key considerations to trade outside RTH, please view: https://www.interactivebrokers.com/faq?id=691836583
We hope this information is helpful!