1) Send order via IB SmartRouting
To use IB SmartRouting, select Smart as the order routing destination when you add a market data line, or when you submit an order. Inter-market spreads can be composed of stock/stock, stock/option or option/option legs.

2) Is the order marketable?
A BUY order is marketable if the buy price is greater than or equal to the Best Offer (BO). A SELL order is marketable if the sell price is less than or equal to the Best Bid (BB). Market orders are always considered marketable. For a spread order to be marketable, all legs must be marketable at the same time.

3) Send to default exchange
The order is sent to ISE if it is natively supported. Otherwise the order is held in the IB system.

4) Route to Best Destination
IB SmartRouting software is designed to maximize execution price and speed. If the order is natively supported on ISE, the system compares the ISE price with an implied price (calculated using the best price for each leg). If the implied price is better, the order is routed leg by leg to the best destinations. Note the following:

• You cannot modify an order while any of the legs are working.

• If you cancel an order and the last unexecuted leg is working, the system will wait 5 seconds to allow the leg to execute before cancelling the order. If an order is cancelled, any executed legs are sent to the IB error account.

5) Does order fully execute?
If all legs of the order fully execute, your transaction is complete. If none or part of the order executes, the balance is sent the default exchange.

6) Transaction complete
The full order has been executed.