Combo Order of Interactive Brokers (IB)
In a mailing list to which they are registered, a person asked how one could change the slippage of the individual legs on orders "combo" with the TWS of Interactive Brokers.
Here is the answer I gave:
as I know you can not set a price for each leg of the combo, but only
complete the combo. IB will try 'to execute your order at best.
An example: Want to open a
bullput with a credit of $ 75.
then you will say to the IB to sell the combo to 0.75.
IB will attempt 'to buy and sell options in the combo so that the
result of the transaction is a credit of $ 75. In fact if you go to see in the window
"Executions" on what was sold / bought the options you'll see
values \u200b\u200b"strange" but that combined give just $ 75. For example, you will find the option
that bought and sold 1.32 to 0.57.
Furthermore, for the strategy does not matter what you buy / sell the individual legs, but the price of the combo taken as a whole. In fact, if
recalculations, returning above example, the chart risk / return and the BEP will see that these do not change.
So, I think is important, especially with simple strategies such
credit / debit spread, concerned about the slippage on the individual legs.
PS: If someone wants to add something ... and 'welcome! :)
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