Butterfly won’t close even 10–15 credits below displayed price, TOS support blames exchange
I’m trading butterflies on very liquid stocks (MSTR,MSFT,ARM) with tight spreads, and I’m running into a problem when trying to close them.
Today I tried to exit a few butterflies. TOS was showing a certain credit value, and I was willing to close the spread for **10-15 credits less** than what the platform displayed. Even with that big discount, nothing filled.
I contacted Schwab/Thinkorswim support, and they told me the price I see on TOS may be coming from exchanges that **don’t actually execute butterfly spreads**. Only a few exchanges handle complex orders, and those exchanges might be quoting completely different prices than what TOS shows.
So the number on the screen isn’t necessarily the real, tradeable price.
This explains why entering the butterfly was easy, but exiting it was almost impossible even when I was willing to take much less.
My main question is:
How do you know the real, executable closing price of a butterfly if the platform shows a value that the actual complex‑order exchange won’t fill, even when you go far below it?
And more generally:
Is this just how butterfly spreads work on every platform, including Robinhood, Interactive Brokers, Tastytrade, Webull, etc., or is there a platform that shows the true complex‑order market?
Would appreciate insight from traders who deal with this regularly.