IB Out of hours

[FTSE Beater]

Hi all

This weekend I'm putting the final touches to a swing trading US stocks strategy (What's that I hear in the background - ah yes Naz and Mr.Charts cheering 😉 )

My question is, will a Stop with IB take me out of a trade if the market isn't open, say out of hours :?:

 

[Trader333]

Hi FB,

In my view yes it will because trading on US stocks starts before the market open and often gaps by quite a distance which is reflected in the IB quote. To be absoultely sure I would email IB and ask them as they are pretty good at answering questions like this.


Cheers


Paul

 

[Mr. Charts]

ftse-b,
Holding overnight is risky and yes, place a stop and you might well get taken out on the Island book. Sometimes I trade pre- and post-market and it's b******* like me that will take you out -and I'd hate to think I was doing that to you ;-)))
Trade intra-day only so you can control and manage your risk just the way you want and from what I've seen of your posts you'd soon be very successful ;-)
R

 

[FTSE Beater]

Hi Mr.Charts

So your the one taking my money!!!! 😉

Anyway, the reason I was looking for overnight holdings was because of the 3 trades a week ruling thingy - but your right. I'll have to stick to intra-day to keep the risks down, especially as the US gaps all over the place 🙄

Thanks for your thoughts 🙂

 

[mmillar]

FB,

IB stops don't operate out of normal trading hours. It does say this somewhere on their website.

Cheers

mmillar

 

[mmillar]

From IB's website...

For US equity, options, and futures markets, stop orders will only be elected by prices posted during normal NYSE trading hours (9:30 a.m. to 4 p.m. New York Time, Monday to Friday).

 

[FTSE Beater]

That's brilliant

Thanks MMillar 🙂

 

[FTSE Beater]

Hi all

Me again, just thought of another thing 🙄

Do you use smart or island to place your orders? and is there any difference - You can tell I've never traded US stocks with IB before can't you 😱

 

[Trader333]

Use SMART

Hi FB,

Use SMART as what this does is to route your order through all available MM and ECNs to get the best price and it all happens in a split second. If you look at the Island book you will often see a several cent spread so you could lose out. The reason that IB are so good on spreads is because of their SMART order routing.

As an exercise why not enter Dell into your TWS screen and choose Island as the order route. Then do the same again just below and this time choose SMART. Then watch the difference between the Bid and Ask for SMART as opposed to Island. There is sometimes quite a difference.


Let us know how you get on and Good Luck



Paul