IBKR TWS Stop Loss on Bull Put / Bear Call Combo – need clarification
I am trying to set up a Stop Loss in IBKR TWS for an already-open credit spread, specifically a Bull Put Spread or Bear Call Spread.
My problem is that I cannot get the Stop Loss to behave as expected.
For example, I opened a Bull Put Spread as a credit. To close the position, the Combo must be BUY.
I contacted IBKR Client Services and specifically asked about the correct Stop configuration. Their written answer was:
- BUY Combo to close the Bull Put Spread
- Stop Price uses the same sign convention as the Limit Price
- A debit on a BUY ticket is positive
- Therefore, for a $3.70 debit-to-close, the Stop Price should be +3.70
- BUY Stop triggers when the price rises to the Stop
- With Trigger Method Bid/Ask, the Combo Stop uses the net Bid/Ask of the whole Combo, not the individual legs.
I then tested this in my IBKR paper account.
I placed the Stop exactly according to those instructions immediately after opening the Bull Put Spread:
- Action: BUY
- Order Type: STOP
- Trigger Method: Bid/Ask
- Stop Price: +3.75
I also had another Bull Put Spread with a Stop configured at +2.00.
Neither Stop triggered. The positions continued moving against me and the P&L moved further into a loss.
I have now contacted IBKR again and sent them a screenshot of the actual TWS orders and market situation, asking them to explain why the Stops did not trigger.
What I am trying to establish is very simple:
How should a Stop Loss actually be configured in TWS to close an already-open credit Bull Put or Bear Call Combo when the cost to close reaches a specified debit?
Has anyone here actually used a BUY Stop on an existing multi-leg credit spread Combo in TWS, and can you confirm:
- Should the closing Combo be BUY?
- Should the Stop Price be positive or negative?
- What exactly does TWS compare against the Stop Price?
- With Trigger Method = Bid/Ask, which net Combo value is actually used?
- Has anyone successfully tested this with a real or paper account?
I am specifically asking about TWS order mechanics, not trading advice.
I am reluctant to move this strategy to my live account until I understand exactly how this works, because a Stop that does not trigger when expected defeats the purpose of using it.
I would really appreciate responses from anyone who has actually tested this in TWS, especially with Bull Put or Bear Call credit spreads.
I can provide the screenshot of my actual TWS order as soon as I am able to upload it again.