One more unique super helpful feature that I would like to discuss today is
IBKR's Conditional Order. It's not that complicated, once we grasp it!
Let say, when Nifty spot goes above 17500 I want to turn bullish and buy Niftybees ETFs for long-term.
Problem:
One cannot accurately say, what would be the price of Niftybees ETF at the time when Nifty spot hovers around 17500. So, how to place buy order?
IBKR's unique simple Solution:
1) From IBKR's
BookTrader, create a condition stating so; you can also Add several logics to one order. Your order to get sent to NSE only when that(those) condition(s) is(are) met.
2) And you may choose your order type,
Since the order is conditioned, although placing Limit or Stop Limit Buy orders are possible but we precisely don't know at what price NIFTYBEES would be trading, when NIFTY50 @ 17500. We do not want to buy when Market is weak!
Well you can place Market order, which means when NIFTY50 hovers >= 17500, NIFTYBEES's 1000 contracts will get executed @ Market. But I do not want that, as I am reluctant to lose so much on slippage.
So, here comes a beautiful solution which is unique to IBKR only. You can use
IBKR Relative Orders (REL) i.e. Pegged-to-Primary. This is how my order page looks like:
The Limit Price, i.e. 193, here denotes Capped price. This means I am not willing to buy NIFTYBEES beyond Rs.193/-.
How to determine the capped limit price? It's easy from the price charts. I don't know NIFTYBEES's price when NIFTY's Spot @ 17500; but from charts can definitely estimate that when NIFTY's Spot @ 17500, NIFTYBEES won't be trading beyond 193.
Because REL (Relative) order type is chosen, IBKR would be automatically pegging to Best Bid + 0.01 (ticksize of NIFTYBEES is 0.01) as I have kept the Offset Amount as 0 increasing my order's probability to get filled. Should you wish to get your order filled more aggressively or conservatively, set the Offset accordingly.
Now when the condition NIFTY spot >= 17500 is met, IBKR will first check whether NIFTYBEES <= 193 or not, then will place order @ Best Bid (at that time) + 0.01.
For any Conditional Relative Sell order, think all above oppositely.
Trust guys, with IBKR you have the power of a PRO at no extra cost. Moreover, programmatically any sort of automation is possible using their APIs.