How do I enter the symbol for Berkshire Hathaway Class B shares onto TWS?

Overview: 

There are a variety of symbol conventions for denoting Berkshire Hathaway Class B shares (CUSIP 084670207).  On the IB trading platforms, this security is designated by entering BRK, then a space and then B (BRK B).  This compares to Bloomberg which uses the convention BRK/B and Yahoo Finance which uses BRK-B.

 

It should also be noted that this security has been designated as a 10-share unit issue by its primary listing exchange, NYSE Arca, due to its relatively low trading volume. A round lot in this security is therefore set at 10 shares as opposed to the standard round lot unit of 100 shares.  If your opening buy or sell order is for an amount less than 10 shares, it is considered an odd-lot and subject to  special handling considerations.   Please review our website under the Trading and then Order Types menu options for additional details.

What is the difference between a stop, and a stop limit order?

Overview: 

 

Stop orders are the simpler of the two.  Stop orders are triggered when the market trades at or through the stop price (depending upon trigger method, the default for non-NASDAQ listed stock is last price), and then a market order is transmitted to the exchange.  A buy stop is placed above the current market price.  A sell stop order is placed below the current market price.  Stop orders may get traders in or out of the market.  The risk associated with stop orders is that they don’t guarantee a price.  When a buy stop order triggers, the market order is transmitted and you will pay the prevailing ask price in the market when received.  When a sell stop order triggers, the market order is transmitted and you will pay the prevailing bid price in the market when received. 

 

Stop limit orders are slightly more complicated.  Account holders will set two prices with a stop limit order; the stop price and the limit price.  When the stop price is triggered, the limit order is sent to the exchange.  A limit order will then be working, at or better than the limit price you entered.  With a stop limit order traders are guaranteed that, if they receive an execution, it will be at the price they indicated or better.  The risk associated with a stop limit order is that the limit order may not be marketable and, thus, no execution may occur.  A sell stop limit order is placed below the current market price.  When the stop price is triggered, the limit order is sent to the exchange and a sell limit order is now working at, or higher than, the price you entered.  A buy stop limit order is placed above the current market price.  When the stop price is triggered, the limit order is sent to the exchange and a buy limit order is now working at or lower than the price you entered.

 

Background: 

Be aware that if you enter these orders on the unintended side of the market, you could be filled immediately at the current market price.  Consider for example a buy stop order.  Buy stop orders should be entered above the current market price.  When the market trades up to or through the stop price, a market order is sent.  If an account holder were to incorrectly enter a buy stop order below the current market price, the system would correctly note that the market had already traded through the stop price, and a market order would be instantly sent.

My open order doesn't appear to working, why not?

Overview: 

In the case of orders that have been placed, but do not appear to be acknowledged, you must contact IB via telephone immediately.  We will need to contact the exchange in these cases.  Communication through web tickets is not real time, and can not be used for issues of an urgent nature.  Requests for trade cancellations/fills must be made within the time limits set by the relevant exchange.  Many equity exchanges have a notification period of 30 minutes or less.  Derivative exchanges have notification periods as short as 5 minutes.  Requests for trade cancellations should be made by telephone or the Bust Request tool (no email or other non real-time method) to IB within 15 minutes of the erroneous transaction.  IB requires sufficient time to prepare the necessary information required by the exchanges and this time is included in the exchange-specified reporting period.  Requests for cancellation are always handled on a best-efforts basis and IB cannot guarantee the reporting time requirements.  In addition, exchanges have bust request fees that account holders must agree to before IB can proceed with the request.  The fees vary by exchange, and you will be informed of what that fee is for the exchange in question prior to the bust request filing.

How do I add the field OCA Group to my Trader Workstation trading page?

Overview: 

Towards the top right corner of the TWS Order Management Screen, you will see a "Trader Workstation/Ticker Lookup" search field.  Immediately to the left of this you will see a wrench shaped icon.  Click the icon.  From here, click on the Order Columns tab from the TWS Configuration window.  On the right side under Available Columns, click on Order Attributes to expand that selection and see all of your choices.  Click on OCA Group so that it is highlighted.  Then click on the Add button.  This will add OCA Group to the Shown Columns list.  Now click on the Apply button at the bottom of the window, and then the OK button.  The OCA Group column should now be on your TWS Order Management page.

Note: Because the OCA procedure is an automated process, there is no guarantee that requested cancellations and modifications will reach the specific exchange before an order has been executed.

Add Remove Liquidity

Overview: 

The goal of this article is to provide proper understanding of exchange fees, add remove liquidity fees, for un-bundled commission schedule.

 

The concept of adding or removing liquidity is applicable to both stocks and stock/index options. Whether or not an order removes or adds liquidity is dependent on that order being marketable or non-marketable.

Marketable orders REMOVE liquidity.
Marketable orders are either market orders, OR buy/sell limit orders whose limit is at or above/below the current market.

1. For a marketable buy limit order, the limit price is at or above the Ask.

2. For a marketable sell limit order, the limit price is at or below the Bid.

Example:
XYZ’s stock current ASK (offer) size/price is 400 shrs at 46.00. You enter a buy limit order for 100 XYZ stock @ 46.01. This order will be considered marketable because an immediate execution will take place. If there is an exchange charge for removing liquidity, the customer will be charged that fee.


 

Non-Marketable orders ADD liquidity.
Non-marketable orders are buy/sell limit orders in which the limit price is below/above the current market.

1. For a non-marketable buy limit order, the limit price is below the Ask.

2. For a non-marketable sell limit order, the limit price is above the Bid.

Example:
XYZ’s stock current ASK (offer) size/price is 400 shrs at 46.00. You enter a buy limit order for 100 XYZ stock @ 45.99. This order will be considered non-marketable, because it will be posted to the market as the best bid, and instead of being immediately executed.
If and when someone else sends a marketable sell order that causes your buy limit order to be executed, you should receive a rebate (credit), if an add liquidity credit is available.

PLEASE NOTE:
1. All accounts trading options will be subject to any options exchanges’ remove/add liquidity fees or credits.
2. Per IB’s website, only negative numbers under the Remove Add Liquidity schedules are rebates (credits).

http://individuals.interactivebrokers.com/en/accounts/fees/commission.php?ib_entity=llc
Above link reference stocks and options commissions/fees

What is the meaning of removing from, or adding liquidity to, the market?

Overview: 

 

The first point to understand is what a marketable order is.  Marketable orders are either market orders, or buy and sell limit orders whose limit price is at or above/below the current market price.  A marketable buy limit order would have a limit price set at or above the current ask in the market.  Conversely, a marketable sell limit order would have a limit price set at or below the current bid in the market. 

 

Marketable orders remove liquidity from the market. 

 

Non-marketable orders are buy and sell limit orders in which the limit price is below/above the current market price.  A non-marketable buy limit order would have a limit price that is below the current ask in the market.  Conversely, a non-marketable sell limit order would have a limit price that is above the current bid in the market. 

 

Non-marketable orders add liquidity to the market.

What do the colors in the Status column of my order lines mean?

Overview: 

Light Gray:  Indicates you are in the process of creating an order and have not yet transmitted it.

 

Light Blue:  Indicates you have transmitted your order, but have not yet received confirmation that it has been accepted by the order destination. 

 

Pale Purple:  Indicates an order has been accepted by the system (simulated orders) or an exchange (native orders) but that currently the order is not working, due to system, exchange or other issues.  When the order becomes active, the order status color will change appropriately.

 

Dark Blue:  Indicates an order has been accepted by the system (simulated orders) or an exchange (native orders) and that this order has yet to be elected.  The order status remains dark blue until election criteria are met.  At the time the order is triggered, the order status color will change appropriately.

 

Green:  Indicates the order has been accepted and is working at the order destination (exchange).

             *When you display the Shortable market data column, this color indicates that at least 1,000 shares are              available to sell short.

 

Dark Green:  This color is used in the Shortable column and indicates that this security can be sold short, but currently there are no shares available for short sale and the system is searching for shares "on the street".

 

Magenta:  Indicates you have sent a request to cancel the order but have not yet received cancel confirmation from the order destination.  At this point the order is not confirmed canceled.  You could still receive an execution while the cancellation request is pending.

 

Burnt Orange:  Indicates a cancellation request has been accepted by the system but currently the request is not being recognized due to system, exchange or other issues.  At this point the order is not confirmed canceled.  You could still receive an execution while the cancellation request is pending. 

 

Red:  Indicates the balance of the order has been confirmed canceled by the system.  This could occur unexpectedly when the destination (exchange) has rejected the order. 

         *In the Shortable column, red indicates that no shares are available for short sale.

         *Once the order is confirmed canceled, the Order Management line will disappear from your trading screen            after 30 seconds.  Please see the Customer Agreement found on www.interactivebrokers.com for further                information on order confirmation and order cancellation. 

 

Maroon:  Indicates an attached simulated order type has been accepted by the system and has yet to be elected.  The order is held in the IB system (and status remains maroon) until the election criteria are met.  At that time the order is transmitted to the order destination specified and the order status color will change appropriately. 

Why is my Stop Limit Order for Globex listed futures contracts generating an error message regarding the price?

Overview: 

The order handling rules associated with CME Globex futures transactions contain restrictions regarding the relationship between the order limit price and stop price which may not exist in other market venues. In the case of a Sell Stop Limit Order, the limit price must be less than or equal to the stop price (<=).  In the case of a Buy Stop Limit Order, the limit price must be greater than or equal to the stop price (>=).  Sell (Buy) Stop Limit Orders entered outside this convention will generate the following error message: “LMT price should be less than or equal to (equal to or better than) STP price

Syndicate content