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Duration: 2:27

Level: Beginner

An investor can choose which exchange to directly route an order to through the Interactive Brokers (IBKR) Trader Workstation (TWS) Classic TWS screen.

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Study Notes:

The Interactive Brokers (IBKR) Trader Workstation Classic TWS screen allows an IBKR Pro client to use IBKR’s SmartRouting or route an order directly to a specific exchange. This video explains how the investor can select the individual exchange to route an order to.

Why might an investor direct route an order?

While we should note that SmartRouting an order is likely to provide an investor with the best overall fill at the lowest overall execution cost, there are a couple of reasons why an investor might wish to direct route an order.

  1. Investor preference
  2. Liquidity or rebates

In Classic TWS, once an order has been created the investor can route an order directly to an exchange by clicking on the Destination data column.

How to add the Destination data column in Classic TWS?

If the Destination column is not shown, right-click on any of the lower column names, scroll down to “Insert column before,” go to the Status area and select Destination.

The investor may be asked if they want to apply this change to other similar pages. Choosing Yes will add the Destination column to other Classic TWS tabs.

How to direct route an order in Classic TWS?

To route directly to an exchange, click on the cell in the Destination column and a drop-down menu will appear. Next, the investor can expand the list of exchanges by clicking on the plus sign next to Directed. The list displays all exchanges available where the order can be submitted to for that instrument.

Next, the investor chooses the exchange that they want to route the order to by clicking on it. Once select the desired exchange will appear in the Destination data column.

Please note certain order types and algorithms may not be supported by every exchange. For more information on order types and exchanges they are supported on, please visit the Interactive Brokers’ website.

After the investor reviews the order, they can click on Transmit to send the order. The investor can monitor the order in the Pending tab in Classic TWS.

 

Resources

IBKR Order Types

IBKR SmartRouting


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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