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Interactive Options Course
Lesson 16 of 21
In this video we will walk through how to enter a Snap to Primary order. The Snap to Primary order works with US stocks, options, and futures. The original order price is determined by the bid or ask price adjusted by the offset. A sell order price is calculated by subtracting the offset from the ask price and a buy order price is calculated by adding the offset to the bid price. While this is similar to a pegged order 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.
We will now enter a Snap to Primary order in the Mosaic Order Entry Panel.
The order will appear in the Activity Window, and you will see “SNAP PRIM” in the Type data Column. The offset amount will appear in the Offset Amt column. If you do not see the offset amount, click on the gear in the upper right-hand corner and select “Aux. Price” in the Available Columns and add to the shown columns and click apply.
The Snap to PRIM 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
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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.
The order types available through Interactive Brokers LLC's trading platforms are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.
What is the difference between Snap to Primary Orders & Snap to Market Orders?
Hello Kareem, thank you for asking. You can review the various order types we offer on our website, including the differences and details of each: https://www.interactivebrokers.com/en/trading/ordertypes.php
I got it Kareem Snap to Market Sell order price = Bid price + offset amount (you are asking higher than the market) Buy order price = Ask Price – offset amount (You are offering lower than the market) Snap to Primary Sell order price = Ask price – offset amount (you are asking lower than the market) Buy order price = Bid price + offset amount (you are asking higher than the market) (Guaranteed to fill but it is higher than the Market – I do not know why you might need to do this as you could simply buy or sell using a market order)