Error Message: Order Rejected

Updated: September 20, 20253 min read

1. Overview

The error message "Order Rejected" appears when a planned order from Interactive Brokers (IB) is not accepted.
OptionsApp displays this message unchanged-it comes directly from Trader Workstation (TWS) or the IB servers.
The specific rejection reason is shown after "Reason:" and can vary depending on the situation.

2. Meaning & Context

"Order Rejected" doesn't mean OptionsApp is malfunctioning; it means IB rejected the order on their server side.
The app transmits the order, IB checks it, and only if all conditions are met is it accepted.
If rejected, IB returns the reason in plain text.

You can find the exact rejection reason in the Trade Log of the respective trade. How to access it is explained in this article.

Example of an Order Rejected error message:

3. Common Reasons for Order Rejected

Below are the most common reasons IB provides in the Reason line, each with explanation and recommended solution:

3.1 Insufficient Margin or Buying Power

Reason examples: Insufficient margin, Insufficient buying power, Large size (LGSZ) reject.
Explanation: The order would require more capital or margin than is available in the account.
Solution: Reduce position size, deposit additional funds, or check if the order size exceeds the maximum size defined by IB (LGSZ).

3.2 Missing Trading Permissions

Reason examples: Not allowed to trade this product, No trading permission.
Explanation: The IB account lacks the required trading approvals for certain products.
Solution: Request the appropriate trading permissions in the IB Client Portal. More on trading permissions for OptionsApp: Video 10: Check Market Data & Trading Permissions

3.3 Missing or Incomplete Market Data

Reason examples: Market data subscription required, No market data available.
Explanation: Without live data for SPX, SPY, or VIX, certain orders cannot be processed.
Solution: Check that the appropriate market data packages are subscribed to in the IB account.
See Required Live Market Data for Using OptionsApp

3.4 Trading Hours / Orders Outside RTH

Reason examples: Exchange is closed, Outside regular trading hours not allowed.
Explanation: Order is outside the product's trading hours, or the order type is not allowed in Extended Hours.
Solution: Adjust Entry times, activate Use Extended Hours Order in the Trade Template if needed, or trade only during regular trading hours.

3.5 Conflict with Existing Orders (opposite close order)

Reason examples: cannot be open, because some close orders will have an opposite position, Number of trades found with conflicted orders.
Explanation: IB doesn't allow buy and sell orders on the same contract to be active simultaneously. If a Stop Loss or Take Profit order is already open targeting the same contract, a new order in the opposite direction cannot be opened.
Solution: This situation shouldn't occur frequently, so the non-execution could be intentionally accepted. Otherwise, the strategies used would need to differentiate more.

3.6 Price Outside Valid Limits

Reason examples: Price outside bands, Price too far from market, Precautionary settings.
Explanation: The limit price is outside the price bands allowed by IB or the exchange.
Solution: Align limit prices realistically with the current market price; check IB Precautionary Settings in the Client Portal. See TWS API Settings

3.7 Wrong Quantity or Minimum Lot Size

Reason examples: Order size must be multiple of lot size, minSize.
Explanation: The quantity doesn't match the minimum lot size required by the market.
Solution: Adjust order quantity to multiples of the lot size.

3.8 Account or API Assignment Missing/Incorrect

Reason examples: Invalid account, Missing account.
Explanation: The API message contains no or an incorrect account ID.
Solution: Check connection settings and account assignment.

3.9 Compliance or Internal IB Policies

Reason examples: Order not permitted for IBKR Lite, Order rejected by policy.
Explanation: IB rejects orders if they don't match the account type or compliance rules.
Solution: Check account type (e.g., IBKR Lite) and switch to a different account model if necessary.

3.10 Security or 2FA Requirements

Reason examples: To accept your order, please login to Client Portal and verify with the token we emailed you.
Explanation: IB blocks orders until two-factor verification or token confirmation is completed.
Solution: Confirm in the Client Portal with token/2FA, wait a few minutes, and send the order again.

4. Further Links

IBKR API Error Codes (including Order Rejected 201)