IBKR Desktop Snap to Primary

The Snap to Primary order type works with US stocks, options, and futures. The original order price is determined by the current bid or ask adjusted by an offset. A buy order price is calculated by adding the offset to the bid price and a sell order price is calculated by subtracting the offset from the ask price. While this is like a pegged order type it doesn’t continue to peg as the price moves.

The Snap to Primary order type can be useful on stocks where the bid/ask spread is wide. Instead of just entering a market order you can submit the Snap to Primary and potentially get a better fill somewhere in between the spread using the offset amount to determine how aggressive you want the order to be without hitting a bid or ask. Adjusting the offset amount determines how aggressive you want the order to be.

Creating a Snap to Primary Order in IBKR Desktop

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, please note that the Snap to Primary Order type is not available for fractional shares. Directly below are three order types; Limit, Market, and Stop. To access the Snap to Primary order type the investor clicks on “Stop” and scrolls down in the drop-down box to “Snap to Primary”

The investor then enters an offset amount which computes the active limit price as follows:

Sell order price = Ask price – offset amount
Buy order price = Bid price + offset amount

Next the investor selects the Time-in-force by clicking on the box. They can select Day or Good ‘Till Cancelled, known as GTC. 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.

Submitting a Snap to Primary order in IBKR Desktop

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.

The Snap to Primary order type allows the investor to send an order to trade between the spread using an offset to be more aggressive than the current bid or ask price.