This page contains notes and tips on creating and transmitting combination orders.
Use SmartRouting to execute legs separately to ensure you get the best price on all legs of your order.
Some exchanges that currently support native combination orders (which means they execute the legs together as one transaction) include:
ISE
ONE
DTB (Euro)
Note on pricing: If you buy a spread and you owe cash (debit spread), enter a positive limit price. If you buy a spread and you receive cash (a credit spread), you must enter a negative limit price. Conversely, if you sell a spread and receive cash, enter a positive limit price. If you sell a spread and owe cash, you must enter a negative limit price.
For example, an April 20.0 xyz call shows a BID price of 6.60 and an ASK price of 6.70. An April 30 xyz call shows a BID price of 0.15 and an ASK price of 0.20.
If you buy a "debit" call vertical spread with the following legs: Buy 1 OPT APR02 20.0 CALL (6.70), Sell 1 OPT APR02 30.0 CALL (0.15) For this transaction you pay: 6.55 (a debit transaction)
If you invert the legs and buy a "credit" call vertical spread with the following legs: Sell 1 OPT APR02 20.0 CALL (6.60) Buy 1 OPT APR02 30.0 CALL (0.20) For this transaction you receive 6.40 (a credit transaction, enter a negative price)
Before you transmit a combination order, carefully review the order parameters from the Order Management line.