Support Board
Date/Time: Sat, 23 Nov 2024 15:49:02 +0000
[User Discussion] - CME turning a stop:stop order to a stop:limit with unlimited risk:Help
View Count: 645
| [2023-06-18 18:30:11] |
| User509533 - Posts: 57 |
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We know there is no stop market; CME converts a stop order to a stop limit with a 3 points offset (for ES) from the trigger price. IMHO that can create an unlimited loss if order does not get filled within 3 points. To solve this, I'm using a stop limit order instead of just a stop (for an OCO triggered by execution of a limit order) with 250 points offset (for ES) essentially making it a stop: market order. 250 points is about 5% of ES, threshold for a circuit breaker to kick in. Am I doing something stupid here creating a bigger risk? Please comment. |
| [2023-06-19 15:07:32] |
| User509533 - Posts: 57 |
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Can Sierra support please comment on this? I thought every user using a stop order would be concerned about CME not offering a stop:market order. Without a stop:market, trader has an unlimited risk. What good a stop:limit with 3 points offset (for ES) during a market crash? Is using a stop:limit with a large offset a better solution than stop:stop order?
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| [2023-06-23 21:23:55] |
| User509533 - Posts: 57 |
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Just to close the thread, I got some answer/opinion from some professionals that CME would never allow more than 3 points (ES) offset for a stop:limit order. I wonder how other brokers like Thinkorswim (Charles Schwab) are offering stop:market and stop:limit for future orders. Are they misleading the traders?
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| [2023-06-30 18:18:30] |
| User509533 - Posts: 57 |
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More information and possible solution (my opinion, please test/check yourself before using): Any future broker using Teton order routing offers a daily loss limit stored on the server side (on Teton/Sierra server). This liquidation process possibly uses a 'market order' (like the action from a Flatten button) and would get a fill unless there is a market pause or a technical glitch. (BTW, this is different from Sierra Chart's client based daily loss limit which requires the trade chart window to be remained open on the desktop).
Date Time Of Last Edit: 2023-06-30 19:04:37
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