Interactive Brokers expands US options trading capabilities
Interactive Brokers expands US options trading capabilities
Interactive Brokers (IBKR) has introduced new tools designed to transform options trading in the United States.
The addition of IBUSOPT and an options liquidity tool to the Trader Workstation (TWS) platform is designed to give traders more control, improve execution performance, and increase the efficiency of their trading activities, according to the broker's website.
IBUSOPT is an order venue for US equity and index options that allows clients to interact with IBKR SmartRouted order flow and execute their orders for actively traded options between the National Best Bid and Offer (NBBO).
This tool helps traders execute options trades more efficiently and effectively by providing greater control and support for multiple order types. IBUSOPT orders are not displayed in the market and wait for a compensating order from another IBKR client.
IBKR's Options Liquidity Tool allows traders to create strategies to increase liquidity by routing orders to the IBUSOPT destination, where they interact with order flow. Several order types are available to capture liquidity in IBUSOPT, including pegged-to-midpoint, pegged-to-best, and relative/pegged-to-primary.
IBKR officials emphasize that each side of the strategy will be configured as a one-cancel-another (OCA) order attribute on the TWS platform, allowing for real-time tracking of strategy performance and summary profit and loss information.
"These new tools will provide traders with more control, better order execution, and increased efficiency in their US options trading," the company said.
Interactive Brokers was founded in 1977 and has won many prestigious awards and prizes. The company provides its clients with a wide range of services, allowing them to engage in both active trading and investing.
