Interactive Brokers Order Types

Interactive Brokers (IB) is a popular online broker offering access to over 100 order types and algos. These order types and algos are designed to help limit risk, speed up execution, provide price improvement, allow for privacy and help with market timing. In this article, we will discuss the different order types available through IB and how they can be used to your advantage when trading.

What Are The Different Order Types?

The most commonly used stock market order types are Market Orders, Limit Orders, Stop Orders, Conditional Orders and OCA Groups.

Market Orders

Market orders are the simplest type of order available on IB. They allow you to buy or sell a security at the best available price in the market. This type of order is usually filled immediately as long as there is enough liquidity in the market.

Limit Orders

Limit orders are used when you want to buy or sell a security at a specific price or better. This type of order ensures that you will not pay more than your specified limit price when buying or receive less than your specified limit price when selling.

Stop Orders

Stop orders are used when you want to buy or sell a security once it reaches a certain price level. This type of order helps protect against losses by allowing you to set an exit point before prices move too far away from your desired level.

Conditional Orders

Conditional orders allow you to set up multiple orders that will be triggered based on certain conditions being met such as price levels or time frames. This type of order can be useful if you want to enter into multiple positions at different points in time without having to manually place each individual order.

OCA Groups

OCA groups allow you to group multiple orders together so that they can be executed simultaneously if certain conditions are met such as price levels or time frames. This type of order can be useful if you want to enter into multiple positions at different points in time without having to manually place each individual order.

FAQs

How do I use these different types of orders?

You can use these different types of orders by logging into your IB account and accessing the Trader Workstation platform where all the various options for placing trades are located. Once logged in, simply select which type of trade you would like to place and follow the instructions provided by IB’s SmartRouting system which will guide you through placing your trade successfully.

Are there any risks associated with using these different types of orders?

Yes, there are some risks associated with using these different types of orders such as slippage which occurs when prices move quickly between when an order is placed and when it is filled resulting in an unfavorable fill price for the trader; however, these risks can be mitigated by using stop loss orders which help protect against large losses due to slippage or other unexpected market movements.

Conclusion

In conclusion, Interactive Brokers offers access to over 100 different types of orders and algos which can be used by traders looking for ways to limit their risk while still taking advantage of potential opportunities in the markets. By understanding how each type works and its associated risks, traders can make informed decisions about which ones best suit their trading strategies and goals while also helping them stay safe from unexpected losses due to slippage or other market movements beyond their control.