Duration: 2:58
Level: Advanced

The IBKR Dark Ice algorithmic order type is available for US Stocks and Futures. It is designed to hide the volume displayed to the market. It is available on Classic TWS, Mosaic, and Mobile.

Study Notes:

The Interactive Brokers Dark Ice algorithmic order type is like an Iceberg order type but also randomizes the display size by plus or minus fifty percent based on the probability of the price moving favorably. The algorithm uses calculated probabilities to decide whether to place the order at a limit price or 1 tick lower than the current offer for buy orders and 1 tick higher than the current bid for sell orders. An investor may want to use the Dark Ice algorithm if they are looking to keep the majority of the order size private from the outside markets.

The Dark Ice algorithmic order type is accessible in Classic TWS, Mosaic, and Mobile. To use the Dark Ice order in Mosaic the investor should enter a symbol in the top left of the Order Entry Panel, choose buy or sell, and select the quantity, in this case a ten thousand shares. Click on the Order type drop-down box, scroll down to IBALGO, and select Dark Ice.

The advanced window will appear, displaying Algo parameters for DarkIce in the first drop-down line. The investor chooses the display size, which is randomized by fifty percent. For this example, choose 200 shares. The investor can also change the default start time from the time the order is entered to a later time and enter an end time if they choose. Lastly if the investor chooses an end time, they can choose to allow the algorithm to continue working past the end time if the order is not completed. This only applies when an end time has been specified and only Day orders are supported by the Dark Ice algorithmic order type. Also note that market orders are not supported, and the investor must set a limit price.

When ready to submit the order close out the advanced window and click submit in the order entry panel. A trade confirmation window will appear showing a recap of the trade criteria selected including:

  • Order Type DarkIce IBAlgo,
  • Strategy = DarkIce,
  • Display size = 200 for this example,
  • Start and End time if selected
  • As well as Yes or No for Allowing trading past end time

When ready click on Transmit to send the order. The order will populate the Activity Window Order tab and show DarkIce in the Order Type column and the investor can monitor the progress of the order.

Dark Ice Order Type

IBKR Algos User Guide

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Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.

Disclosure: Order Types / TWS

The order types available through Interactive Brokers LLC’s Trader Workstation are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.