Interactive Brokers

Conditional Orders

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The conditions attached to a Conditional order state that the order will automatically be submitted OR cancelled only if specified criteria for one or more defined contracts are met.

Products Availability Routing TWS
CFDs US Products Smart Attribute
Futures Non-US Products Directed Order Type
FOPs         Time in Force
Forex         Order Ticket
Options            
Stocks            
Warrants            
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Example


  • Conditional Buy Order

    Order Type In Depth - Conditional Buy Order

    Step 1 – Create a Limit Buy Order

    The JAN11 490 XYZ call is currently trading at $30.20 - 31.00. You want to buy 1 contract, but only if the Ask price of the underlying stock falls to 464.00 per share. You enter a Limit Buy order for 1 contract, then right-click the order line and select Modify > Condition from the menu.

    Assumptions
    Action BUY
    Qty 1
    Order Type LMT
    Market Price 30.20 - 31.00
    Limit Price 30.95
     
  • Conditional Buy Order

    Order Type In Depth - Conditional Buy Order

    Step 2 – Add Condition to the Order

    On the Conditional tab in the Order Ticket, you add a new condition by clicking the Add button and following the steps shown above. You want to buy 1 contract if the price of the underlying stock falls to 464.00 per share so you select Price as the condition, then enter the underlying symbol, trigger method, operator and trigger price.

    In this example, we are using the Default trigger method, which for US options is the double bid/ask method, where two consecutive ask price (bid price) values must be less than (greater than) or equal to the trigger price, and the second bid or ask must have greater size if it is at the same price level as the first bid or ask.

    You click Transmit to submit the order.

    Assumptions
    Action BUY
    Qty 1
    Order Type LMT
    Market Price 30.20 - 31.00
    Limit Price 30.95
    Conditional Settings
    Condition Price
    Underlying XYZ
    Method Default
    Operator <=
    Price 464.00
     
  • Conditional Buy Order

    Order Type In Depth - Conditional Buy Order

    Step 3 – Place Conditional Order for 1 XYZ Option Contract

    You've transmitted your Conditional order. When the price of the underlying stock falls to 464.00 per share, your Limit order to buy 1 option contract will be submitted.

    Assumptions
    Action BUY
    Qty 1
    Order Type LMT
    Market Price 30.20 - 31.00
    Limit Price 30.95
    Conditional Settings
    Condition Price
    Underlying XYZ
    Method Default
    Operator <=
    Price 464.00
     
  • Conditional Buy Order

    Order Type In Depth - Conditional Buy Order

    Step 4 – Market Price of Underlying Falls, Condition Satisfied

    The market price of the underlying XYZ stock falls to 464.00, which is the trigger price for the condition. The condition having been satisfied, a Limit order for 1 XYZ option contract is submitted with a Limit price of 30.95.

    Assumptions
    Action BUY
    Qty 1
    Order Type LMT
    Market Price 30.20 - 31.00
    Limit Price 30.95
    Conditional Settings
    Condition Price
    Underlying XYZ
    Method Default
    Operator <=
    Price 464.00
     
  • Conditional Buy Order

    Order Type In Depth - Conditional Buy Order

    Step 5 – Market Price of Option Contract Falls, Limit Order Filled

    The market price of the underlying XYZ stock falls to 464.00, which is the trigger price for the condition. The condition having been satisfied, a Limit order for 1 XYZ option contract is submitted with a Limit price of 30.95.

    Assumptions
    Action BUY
    Qty 1
    Order Type LMT
    Market Price 30.95
    Limit Price 30.95
     

Any stock or option symbols displayed are for illustrative purposes only and are not intended to portray a recommendation.