IBKR Desktop Limit on Close Order

A Limit on Close or LOC orders are a type of limit order that aims to execute a trade at the close if the market price is at or better than the limit price. If the market price is worse than the limit price, then the order is not executed.

Set up of Limit on Close order in IBKR Desktop

The order panel in IBKR Desktop can be populated by either clicking on a symbol in the Portfolio or Watchlist screens or typing in a symbol in the search bar. Once the symbol is selected the investor can click “Buy” or “Sell” to create an order window. In this example the investor chooses to create a “Buy” order and can select the quantity in shares. Note that Limit on Close orders do not support fractional shares. The investor chooses 100 shares. Directly below are three order types; Limit, Market, and Stop. The investor clicks on “Stop” and scrolls to “Limit on Close”, next they input the limit price for the order in the line below. They can select Day or Good ‘Till Cancelled, known as GTC. For more information on these terms please see the IBKR Traders’ Glossary.

Submitting a Limit on Close order in IBKR Desktop

When the investor is satisfied with the order inputs they can either click on “Preview” to see a breakdown of the order as well as its effect on margin, “Save” to save the order to be transmitted later, or “Transmit” to send the order. The investor chooses “Preview”, and the Order Preview window appears. Once satisfied they click “Transmit” to send the order.

Please note that the Nasdaq stops accepting LOC orders at 3:58 pm ET but cannot be cancelled or modified after 3:55 pm ET and NYSE stops accepting LOC orders at 3:50 pm ET. Please see each exchanges website for more details.