Please note that the condition for legging in a non-guaranteed combo order is the limit price must be at least 1 tick though the implied quotes. Since your order was just hitting (not through) the bid price, the combo order was not submitted. Please let us know if you have any further questions. Thank you.Regards,IB Customer Service
I finally got to experience it on May 27. I need to go to my son childcare centre to celebrate his birthday. Thus, I have no choice but to submit a Limit order before I leave. With the understanding of how IB combo order works, I submit a BUY combo order to close my K200 Jul09 +280 - 285 Call Vertical Spread at 0.15 (my target price).
Under normal execution, if there is someone selling at 0.15, my BUY Limit order will be, should be filled. Under IB execution, there must be someone selling at 0.14, then my BUY Limit order at 0.15 will be filled. But at what price? 0.15 my BUY/BID Limit order price or the SELL/ASK price at 0.14?
At 9:47am, there are orders queuing to SELL/ASK at 0.15. True enough, my BUY/BID Limit order didn't get filled.
At 9.50am, when the SELL/ASK price move down to 0.14, my BUY/BID Limit order was triggered. And it bought at 0.14 the SELL/ASK price.
This is not too bad actually. At least, I can now close my position at my target price (or 1-tick lower) with a submitted BUY Limit order. I do not need to stare at the screen to close the position.
However, this is not workable for SELL Limit order. You will not want to submit a SELL Limit order at a pre-defined price say 0.25 and leave it for the market to fill you. For a Delta 10, it is a good price at 0.25. However, if the Delta have moved to 15 and you got filled at 0.25, that will not be a good price. In the first place, you might not even want to open any position with Delta 15.
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