Interactive Brokers

Market with Protection Orders

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A Market with Protection order is a market order that will be cancelled and resubmitted as a limit order if the entire order does not immediately execute at the market price. The limit price is set by Globex to be close to the current market price, slightly higher for a sell order and lower for a buy order.


Note:

The Reference Table to the right provides a general summary of the order type characteristics. The checked features are applicable in some combination, but do not necessarily work in conjunction with all other checked features. For example, if Options and Stocks, US and Non-US, and Smart and Directed are all checked, it does not follow that all US and Non-US Smart and direct-routed stocks support the order type. It may be the case that only Smart-routed US Stocks, direct-routed Non-US stocks and Smart-routed US Options are supported.

Products Availability Routing TWS
Futures US Products Smart Attribute
FOPs Non-US Products Directed Order Type
Globex Only Time in Force
View Supported Exchanges  Open Users' Guide

Example


  • Market with Protection Buy Order

    Order Type In Depth - Market with Protection Buy Order

    Step 1 – Enter a Market with Protection Buy Order

    You place a Globex-directed futures order to buy 3 March contracts, with the current market price at $1102.25. Select MKT PRT in the Type field to specify a market-with-protection order. Submit the order. If the entire order does not immediately execute at the market price, the unfilled portion of the order will be cancelled and resubmitted as a limit order.

    Assumptions
    Action BUY
    Qty 3
    Order Type MKT PRT
    Market Price 1102.25
    Limit Price MARKET
  • Market with Protection Buy Order

    Order Type In Depth - Market with Protection Buy Order

    Step 2 – Order Transmitted

    You've transmitted your market with protection order. If the entire order does not immediately execute at the market price, the unfilled portion of the order will be cancelled and resubmitted as a limit order.

    Assumptions
    Action BUY
    Qty 3
    Order Type MKT PRT
    Market Price 1102.25
    Limit Price MARKET
  • Market with Protection Buy Order

    Order Type In Depth - Market with Protection Buy Order

    Step 3 – Order is Partially Filled as a Market Order

    One contract executes at the market price of $1102.25. The rest of your order is cancelled, but will be resubmitted as a buy limit order at a limit price set by Globex, slightly higher than the market price for a buy order.

    Assumptions
    Action BUY
    Qty 3
    Order Type MKT PRT
    Market Price 1102.25
    Filled 1 contract
    Order for the remaining two contracts is cancelled and will be resubmitted at the Globex-defined limit price.
  • Market with Protection Buy Order

    Order Type In Depth - Market with Protection Buy Order

    Step 4 – The Rest of the Order is Filled as a Limit Order

    The cancelled portion of your order, two futures contracts, has been resubmitted as a limit order. The order fills at 1102.50.

    Assumptions
    Action BUY
    Qty 2
    Order Type LMT
    Limit Price 1102.50

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