trading YM & stops

[dalby]

"communications with globex"

we were talking YM. YM doesn't trade on globex (not yet at least. when the merger goes through...)

[BlowFish]

	Quote:	dalby
	"communications with globex" we were talking YM. YM doesn't trade on globex (not yet at least. when the merger goes through...)

Yes of course I am well aware of that. :-) It was just an anecdote of how things can go wrong. It was one of the largest single losses I have taken, probably the largest. Of course in the days of phone trading there was much more that could go wrong.

I thought this took the discussion into a broader and more useful direction..."know exactly where your orders are held" and "always check whether your orders have been elected or not". Having orders busted (a perfectly good order that has been accepted by the exchange cancelled at a later time) is another frustrating experience usually due to some fat fingered trader placing an order for 10k rather than 10 but that's another story.

It amazes me that people would consider executing a trade without understanding the basic nuts and bolts of the exchange.

Cheers.

[notouch]

	Quote:	The Bear
	I don't think I've ever seen a STOP MARKET order go green. If it isn't green, I'm pretty sure it's not native. The only orders i've seen go green are LIMIT orders, and these are held natively on the exchange. Have you seen your STOP MARKET orders go green? Note that I only trade on NYMEX, NYSE, ECBOT. I've checked and of the ones I list here, STOP MARKET for ECBOT might be exchange native for IB, but I need to confirm. The orders don't go green, but when they are BLUE, for ECBOT, it may mean it is native.

That's because of the nature of a stop order compared to a limit order. A limit order is working at the exchange as soon as it's been accepted by the exchange whereas a stop order is accepted at the exchange but only becomes a working order once the elected price is hit. So when your stop order is blue it means the exchange has accepted it (assuming the exchange supports that order type).