Managing orders once they’re placed
Effective order management is important and typically involves canceling or updating existing orders. Canceling orders is straightforward: we may enter a limit or stop loss order that we no longer want. Market conditions change or our strategy indicates a different entry or exit position. In these cases, we’ll use the IB API to completely cancel the order.
On the other hand, we may want the order to remain in the order book but with different attributes. Traders frequently update orders to change the quantity being traded, which allows them to scale into positions in response to market analysis or risk management requirements. Adjusting limit prices is another common update, which lets us set a new maximum purchase price or minimum sale price, depending on market conditions. Similarly, modifying stop prices is a strategic move to manage potential losses or lock in profits, especially in volatile markets.
We can update existing...
