Limit orders on options with Interactive Brokers

[dr_trick]

Hi all,

I am testing order placement with the IB API. I'm getting errors when I try to place orders with the limit price inside the market.

For example, an option was quoted at 3.25 - 3.35, I placed a buy order with a limit price of 3.26 and I get an error stating that the limit price is invalid. When I re-submitted the order with a limit price of 3.25, it is accepted. I think this is quite strange because if I place a market order it gets filled at the current ask (i.e. 3.35).

My question is are there any technicalities about the price of limit orders? I can't seem to find any thing from a web search.

thanks in advance...

cheers

 

[Dommo]

Presumably the option is exchange traded, and has a minimum tick size - eg min tick size for this option may be 0.05 rather than 0.01.

 

[dr_trick]

Presumably the option is exchange traded, and has a minimum tick size - eg min tick size for this option may be 0.05 rather than 0.01.

Ahh.... that is possible, thanks for that. i'll go check the contract specs. thanks again.