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Duration: 2:46

Level: Intermediate

Interactive Brokers’ (IBKR) IBUSOPT allows the investor to rest liquidity adding orders option orders and interact with other IBKR investors who send marketable orders.

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Study Notes:

Interactive Brokers’ (IBKR) IBUSOPT destination allows the investor to rest liquidity adding option orders and interact with other IBKR investors who send marketable market and marketable limit Smart routed orders. Investors can access the IBUSOPT destination to trade US equity and index options by choosing to direct route their orders to IBUSOPT. The IBUSOPT destination can be beneficial to investors who wish to interact with IBKR retail order flow, rather than paying the spread for removing liquidity.

How does the investor select IBUSOPT?

Using the TWS Mosaic Order Entry panel, once the option has been entered an investor can route an order directly to the IBUSOPT destination by using the Advanced window area.

In the Order Entry panel, the investor opens the Advanced window by clicking on the plus sign on the Advanced button. Locate the Destination button in the top left corner. To locate IBUSOPT the investor should click on the white arrow on the Destination tab, scroll down, and choose IBUSOPT by clicking on it. The Destination button will now show IBUSOPT.

To close the Advanced window the investor clicks on the red “x” next to the Advanced button. The investor can select the order parameters such as price, type, and Time in Force.

What order types are supported in the IBUSOPT?

The IBUSOPT destination supports price limit and Relative or Pegged to Primary orders as well the following option order types that aren’t available by directing the order to a US option exchange:

  • Pegged-to-Midpoint
  • Pegged-to-Market

For more information on these order types please visit the Interactive Brokers’ website.

How does the investor send the order in IBUSOPT?

When they are ready to send the order the investor clicks on the Submit button in the lower right-hand corner of the Order Entry panel and an order confirmation window will appear with a summary of the order showing IBUSOPT next to Routing. After the investor reviews the order, they can click on Transmit to send the order.

In the Orders tab of the Activity panel in the bottom left-hand side, the Destination column shows IBUSOPT.


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.

Disclosure: Order Types / TWS

The order types available through Interactive Brokers LLC’s Trader Workstation are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.

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