Order Types specify which advanced order algorithm is used for execution and the parameter values. Once created, an Order Type can be used without entering any parameters. To simplify the use of IB's algorithms not all the algorithm parameters may be visible and customizable.
All Order Types are sent using IB's SmartRouting. SmartRouting continuously evaluates fast changing market conditions and dynamically re-routes all or parts of your order seeking to achieve optimal execution. You can read more about it here.
Supported IB Algorithms
VWAP - Best Efforts
This algorithm seeks to achieve the Volume-Weighted Average price (VWAP), calculated from the time you submit the order to the close of the market.
Percent Of Volume
This algorithm seeks to participate with volume at a user-defined rate. Order quantity and volume distribution over the day is determined using the target percent of volume you entered along with continuously updated volume forecasts calculated from TWS market data.
Relative (a.k.a. Pegged-to-Primary) orders provide a means for traders to seek a more aggressive price than the National Best Bid and Offer (NBBO).
Same as Relative Order but a Limit price is required