A Discretionary Order attribute can be applied to any smart-routed order that uses a limit price. The defined discretionary amount is added to (for a buy) or subtracted from (for a sell) the limit price, and increases the price range over which the order is eligible to execute. Only the original limit price is displayed to the market.
Create the Buy or Sell order in the Order Entry panel.
Expand the "Advanced +" panel to display the Discretionary Amt button.
Click to make the field editable and enter the discretionary amount. To use 2 cents, enter .02.
Submit the order.
From Classic TWS:
- Display the Discretionary field on an order management line:
- Click the Ask price to create a BUY order, or the Bid price to create a SELL order.
- Enter a discretionary amount in the Discretionary Amt field of the order line.
- To transmit the order, click the "T" in the Status field.
For US options, you can elect to have the discretionary amount automatically set by TWS (when you specify a limit price somewhere between two price levels) by checking Submit orders for nickel/dime priced options with price between price levels as Discretionary.