trading YM & stops

[maildigger]

For the guys who trade the YM ... I read that placed stops are placed locally and not directly in the market (vs ES placed directly in the market). Does this not concern you as a trader?

[cooter]

Nope. Should it?

[brownsfan019]

It might depending on how the stops are held. This is depended on your broker and the platform you are using. For example, some firms hold your stops on their servers and/or the platform's servers. If your computer loses connection, your orders are still out there.

I would suggest everyone know exactly how this is handled at your broker b/c sooner or later you will find out the hard way.

[BlowFish]

I had a bad experience once when an order held at my brokers (IB) was not elected due to their communications with globex going out the split second that it was hit. It disappeared off my trading screen so I though OK all is well. about a couple of hours later I got a message saying that it had not gone. Cost a lot. Just another lesson albeit an expensive one.

Most exchanges support either a stop or a stop limit natively (some support both) - just use a stop with a large limit if its the latter.

[notouch]

ECBOT supports native stops. All decent brokers should offer them.

[The Bear]

	Quote:	notouch
	ECBOT supports native stops. All decent brokers should offer them.

Note guys that IB does not provide native stops in pretty much all the markets we trade. TradeStation I doubt provides native stops, they don't even have GTC orders for any futures...how pathetic is that. I found a broker called OPEN E CRY and they claim to offer exchange native orders. I'm curious if anyone has used them for order execution or knows how well capitalized the corporation is.

[cooter]

	Quote:	The Bear
	Note guys that IB does not provide native stops in pretty much all the markets we trade. TradeStation I doubt provides native stops, they don't even have GTC orders for any futures...how pathetic is that. I found a broker called OPEN E CRY and they claim to offer exchange native orders. I'm curious if anyone has used them for order execution or knows how well capitalized the corporation is.

Every broker has its own idiosyncrasies, Bear. OEC is no different here.

I've posted elsewhere in this forum about Open E Cry and their operation - search and you'll find it.

If speed to market is your thing, then the OEC Trader platform is a smidgen slower than other platforms, like Innnfinitty AT, for example. Side-by-side, you'd notice the difference. Which is surprising since OEC is a fully-licensed FCM in its own right, not an IB, like Innnfinnity. (Misspelling intentional).

One thing that OEC is good for however, is Pit-Traded contracts. You can do these using the same OEC Trader platform and DOM that the Electronic contracts are traded on.

And if the pit and electronic contracts are fungible, you can exit one with a trade on the other. Excellent backup to have when the eCBOT crashes, and you need to exit your position, say, in the 30 year bonds.

[BlowFish]

	Quote:	The Bear
	Note guys that IB does not provide native stops in pretty much all the markets we trade.

IB provide native stops in all the markets I trade Eurex Globex CBOT CME. If memory serves me correctly when I checked out asia they do for Hong Kong, Singapore and Japan. As far as far as I can tell if an exchange supports an order they provide it natively.

I'm not sure what you are basing your information on but I think you are mistaken. I guess you could be talking about spot forex but as that is not really a 'real' market there is nowhere to hold stops natively (unless you count taking a bet with your broker a 'real' market).

I dont use IB's platform directly I use an "order helper". However you can see exactly where your order is graphically on there traders workstation (TWS). Once it goes green in the appropriate column you can be sure it is sitting on the exchange.

IB Has its faults but breadth of markets you can trade and orders you can use in those markets are not one of them.

Cheers,
Nick.

[The Bear]

	Quote:	BlowFish
	IB provide native stops in all the markets I trade Eurex Globex CBOT CME. If memory serves me correctly when I checked out asia they do for Hong Kong, Singapore and Japan. As far as far as I can tell if an exchange supports an order they provide it natively. I'm not sure what you are basing your information on but I think you are mistaken. I guess you could be talking about spot forex but as that is not really a 'real' market there is nowhere to hold stops natively (unless you count taking a bet with your broker a 'real' market). I dont use IB's platform directly I use an "order helper". However you can see exactly where your order is graphically on there traders workstation (TWS). Once it goes green in the appropriate column you can be sure it is sitting on the exchange. IB Has its faults but breadth of markets you can trade and orders you can use in those markets are not one of them. Cheers, Nick.

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.

[BlowFish]

	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.

Not sure about Nymex I have never looked at it ... that may be why we see different things. I don't trade ECBOT on a regular basis (well have not for a while) so would have to check. That may be one of the weird ones that needs a stop limit to go native (as opposed to a regular stop). The moral of the story of course is know your orders and know where they are held! At least with IB you know exactly where the order is held by the colour code.