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Duration: 4:57

Level: Advanced

This lesson demonstrates the capabilities of TWS BasketTrader. This integrated piece of software enables the user to create complex orders for, and save a basket of stocks to be executed simultaneously. You will learn see how basic orders can be entered into Classic TWS before advancing to the BasketTrader software, where orders can be manipulated and the basket executed as a whole or piecemeal.

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Study Notes:

IB’s BasketTrader can be used to upload a set of previously configured orders allowing the user to conveniently transmit a basket of orders with a single click.

In this tutorial you will see how easy it is to use TWS to create multiple order types using stocks and options and upload quickly to BasketTrader for simultaneous transmission. Users may set up in advance complicated orders, stops and algorithmic orders for later use using IB’s advanced trading tool.

There are four steps to understand. First, enter the orders in Classic TWS on a single page. Save the orders as a basket. Open BasketTrader and import the saved basket of stocks and finally cancel youroriginal orders.

I have already added several Market orders for a selection of stocks. Let’s enter a series of order types:

(INTC) I want to enter a VWAP order through the end of trading to buy a large quantity of shares in this

(MCD) For this symbol I will enter a bracket order. If the initial limit order is filled, the system will work sell orders to either take profit or cut losses. If one executes, the other will be cancelled.

(F) For this ticker I want to enter a couple of Scale orders in an attempt to buy weakness should the share price fall.

(NFLX) For this stock where I have a large position I want to close without showing my hand to the market and so wish to limit the display size using IB’s Dark Ice algo.

(IBKR) And finally let’s add a limit option set to the midpoint to buy call options on this ticker.

How many orders you enter is up to you, but for the purposes of this tutorial I’ll just use these.
With a variety of transactions set up on this page we are ready to save all of the orders as a single basket trade. To do this use the Trade menu and click on “Save Orders as a Basket”. By default the software will name your basket after the page name. Feel free to change it to whatever you want.

Use the Trading Tools dropdown menu and select BasketTrader from beneath the Multi Contract menu.

Use the Basket file menu or the Browse button to locate your saved basket and click on it. The orders panel will populate with those orders you just created.

Now you can cancel all of those orders you just created in Classic TWS by choosing Cancel from the Trade menu and locating Cancel all Orders on Page.

In the Execute Basket area you may determine a percentage of the basket to transact now by typing a percentage or choosing a dollar amount in the Quantity field. When you are ready to submit your orders, click the Transmit button. Use the Cancel All button to request cancellation of your orders.

The Summary box will populate with various data points showing the progress of your basket.
Below you will see completed trade progress for your Basket orders. You can sort the data by any of the column headers and you may expand and collapse by ticker for further information on execution, exchange, time and price.

Those are the easy steps to using the BasketTrader – IB’s easy-to-use advanced trading tool for a convenient way to enter saved orders within TWS.

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

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