Order Execution

Overview

FlashAlpha provides seamless order execution for options spreads through Interactive Brokers. This guide covers order types, execution flow, and optimization.

Order Flow

1. Select Trade

From scan results or watchlist, click Trade on any position.

2. Review Order

The order preview shows:

• Strategy details
• Strikes and expiration
• Quantity
• Order type
• Estimated fill price

3. Adjust Parameters

Modify as needed:

• Quantity
• Price
• Order type
• Time in force

4. Confirm & Submit

Review final details and click Submit Order.

5. Monitor Execution

Track order status in the Orders panel.

Order Types

Market Order

Executes immediately at best available price.

Use when:

• Liquidity is high
• Speed is priority
• Spread is tight

Caution: May experience slippage in wide markets.

Limit Order

Executes only at specified price or better.

Use when:

• You want price control
• Spread is wide
• Not urgent

Setting limit price:

• Aggressive: Near ask (for buying) or bid (for selling)
• Passive: Near mid-point
• Conservative: Beyond mid-point

Natural + Limit

Attempts natural fill, then reverts to limit.

Use when:

• Want quick fill
• But with price protection

Spread Order Types

Net Debit/Credit

Single order for entire spread at net price.

Advantages:

• Single execution
• Price certainty
• No leg risk

How it works:

Iron Condor:
- Sell 100 Put @ 1.50
- Buy 95 Put @ 0.75
- Sell 110 Call @ 1.25
- Buy 115 Call @ 0.60
Net Credit Target: $1.40

Legging In

Execute legs separately.

Advantages:

• Potentially better fills
• More control

Disadvantages:

• Leg risk (partial fills)
• More complex
• Not recommended for beginners

Time in Force

Day

Order expires at market close.

GTC (Good Till Cancelled)

Order remains active until filled or cancelled.

IOC (Immediate or Cancel)

Fill immediately or cancel. Partial fills accepted.

FOK (Fill or Kill)

Fill entire order immediately or cancel. No partial fills.

Smart Routing

FlashAlpha uses IBKR's smart routing by default:

• Routes to best available exchange
• Seeks price improvement
• Optimizes for execution quality

Manual Routing

For advanced users, specify exchange:

• CBOE
• ISE
• PHLX
• And others

Position Sizing

Risk-Based Sizing

Set max risk per trade:

Position Size = Max Risk / Spread Max Loss

Account Percentage

Risk a percentage of account:

Position Size = (Account × Risk %) / Spread Max Loss

Fixed Quantity

Specify exact number of contracts.

Order Management

Viewing Orders

• Open Orders: Pending executions
• Filled Orders: Completed trades
• Order History: All past orders

Modifying Orders

1. Find order in Open Orders
2. Click Modify
3. Adjust price or quantity
4. Confirm changes

Cancelling Orders

1. Find order in Open Orders
2. Click Cancel
3. Confirm cancellation

Execution Tips

Get Better Fills

1. Start at mid-point - Don't pay the spread immediately
2. Be patient - Give limit orders time to work
3. Trade liquid options - Tighter spreads, better fills
4. Avoid the open - First 15 minutes have wider spreads
5. Watch the underlying - Enter when underlying is stable

Avoid Common Mistakes

1. Don't chase - If price moves away, reassess
2. Check quantity - Verify before submitting
3. Verify account - Ensure correct paper/live mode
4. Monitor fills - Watch for partial fills on legs

Execution Reports

After each execution:

• Fill Price - Actual execution price
• Slippage - Difference from expected
• Fees - Commissions and exchange fees
• Time - Exact fill timestamp

Access reports in History → Executions.