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Direct MessagesDate/Time: Thu, 19 Sep 2024 02:04:42 +0000
Post From: Stop loss(market) order getting converted into a Stop limit order!
| [2024-09-11 21:14:49] |
| User98657 - Posts: 325 |
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This is not a terminology issue. The CME does offer two stop types, Stop Limit and Stop with Protection (or Stop Market). The latter is what most of us assume we're using when we select an order type of "Stop". The problem is, the order type currently being transmitted to the CME is coded, or tagged (I'm not sure what the explicit nomenclature would be) as an order type that is converted to Stop Limit. What we need is support to submit the alternate order type "Stop with protection". And yes, there is a band within which that now "Market" order needs to be triggered, which is referred to as the Non-reviewable band. Looking it up today I find that the band on the NQ is 12 points. Had this been the Stop order I was using last week and again today there would have been plenty of liquidity within that range to take me out of the trade. Instead my "limit" gets rejected because it is above the market. I was stung a second time by this today because I simply didn't realize I wasn't using a Stop Market order. I'm asking SC to provide support to implement the Stop with Protection order type, and I'm hoping this is seen as an issue that requires improvement. I know many traders, especially newer traders, don't even understand the differences between many order types. But I'm also assuming many, if not most, are under the assumption that when they choose the order type "Stop", that it is actually a protective Stop. In our current situation it simply is not. The SC documentation on the Order Type "Stop" does not provide this information, so there's no way anyone should really know that this is the case. And using a Triggered Limit, as is offered as a workaround, would, in my opinion, open us up to even more jeopardy. A Triggered Limit is a client-side resting order. So that "Limit" order isn't even sent the exchange until your chart sees the touch. That's an eternity in a fast moving market. That Limit would almost certainly be above the current market price, and I would expect it to get rejected almost all of the time. Again, like I said, hopefully SC sees this as something that needs to be addressed. When they do, they are very good about getting it taken care of. Date Time Of Last Edit: 2024-09-11 21:19:14
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