Shiny Things
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- Dec 13, 2009
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Sorry if this has been asked and answered before, but this thread has gotten too large to search.
What is the "correct" way for a casual investor to place an order for IWDA on IBKR?
I think a limit order, maybe 1% through the last traded price, is fine. If you're using Google Finance as your "last trade" source, that should be enough to guarantee you a fill.
Ignore IBALGO and stuff like that; that's way way way overcomplicating it.
I don't think it really matters much. "Blind" market orders are fine in liquid markets for long-term investors. However, out of an abundance of caution, you can go look at whatever source of free market data you want then pick a limit price, say, 0.5% above the market price and place your order. That'll prevent the order from getting filled at some weirdly momentarily "crazy" price, as might happen in a reverse "flash crash." But the order will get filled, with high confidence.
I think IBKR already does this in most cases; they generally convert market orders to a limit order 1-5% through the offer, especially if the exchange doesn't natively support market orders.