Orders submitted to IBKR that remain in force for more than one day will not be reduced for ordinary dividends. For order adjustment considerations prior to the ex-dividend date, consider using a Good-Til-Date/Time (GTD) order type, Good-after-Time/Date (GAT) order type, or a combination of the two and set your cancel date the day before the Ex-Date.
Stock orders with a time in force attribute set to work beyond one trading session will be flagged as Do Not Reduce (DNR). IBKR will, on a best efforts basis, cancel such GTC orders as described above. However, under certain circumstances IBKR may not be able to cancel such orders on a timely basis, including but not limited to when IBKR receives information on a corporate action within 48 hours of the announced effective date. Such GTC orders may continue to remain in force and may be eligible for execution. It is the Customer's responsibility to monitor their account and to act accordingly in the event that a corporate action has been announced.
GTC orders will generally be canceled automatically under the following conditions:
- If a corporate action on a security results in a stock split (forward or reverse), exchange for shares, or distribution of shares.
- If the company issues a dividend where the rate exceeds 3% of the prior day's closing price.
- If you do not log into your IBKR account for 90 days.
- At the end of the calendar quarter following the current quarter. For example, an order placed during the third quarter of 2019 will be canceled at the end of the fourth quarter of 2019. If the last day is a non-trading day, the cancellation will occur at the close of the final trading day of that quarter. For example, if the last day of the quarter is Sunday, the orders will be cancelled on the preceding Friday.
- Orders that are modified will be assigned a new "Auto Expire" date consistent with the end of the calendar quarter following the current quarter.