Interactive Brokers adds two levels of options trading permissions
Clients of electronic trading major Interactive Brokers LLC can now choose from four levels of options trading permissions to find choices more precisely aligned with their options trading strategies.
- Level 1: Covered calls are allowed.
- Level 2: Everything in Level 1, plus covered options positions such as long calls/puts, long straddles/strangles and protective calls/puts.
- Level 3: Everything in Levels 1 and 2, plus options strategies that have limited maximum potential loss such as short puts and short, long or unbalanced butterflies.
- Level 4: All options strategies are allowed.
Clients who previously had Full Options were mapped to level 4 and those with Limited Options were mapped to level 3.
Let’s note that clients of the broker can now add liquidity with the IBUSOPT destination.
Clients who trade US options can now choose to direct route their options orders to IBUSOPT to participate in the retail order flow for US equity and index options. Orders routed to IBUSOPT will be held at this liquidity-providing destination, and will be eligible to participate in an exchange auction to potentially fill against other SMART-routed marketable orders from IBKR clients. Note that there is no guarantee that orders routed to IBUSOPT will fill.
To route a US equity or index options order to IBUSOPT from Mosaic, set up the order in the Order Entry panel and open the “advanced” panel to select a new destination. Once traders have selected IBUSOPT as the destination, available order types will be shown in the dropdown.