Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Trendup_

DOM at Limit

Recommended Posts

I read somewhere that CME allows to place a buy limit order above the current price and a Sell limit order below current price. (Can’t be done on CBOT).

The OEC DOM set as follow:

Dom Options/Additional/Allow Limit Above Mkt is checked by default so it is able.

 

My question is what will be the advantage of buying at limit above the price.

Can the big players manipulate the market doing so? For a small trader, is the transaction quicker and more reliable?

Share this post


Link to post
Share on other sites
Not sure this will answer your question 100%, but I only enter on buy stops and sell stops. I want price to be moving in my direction, not against it.

 

That is my sentiment too, but if it is possible and the DOM has been design to allow it, it must be for a good reason.

Let say I place a buy limit, one pip above current price, my bid will be taken straight away( at that price 1 pip above market), in that case will the transaction be processed quicker than at market?

I try to figure out what will be the advantage, may be for large traders to jump the queue, no ideas??

Share this post


Link to post
Share on other sites
It sounds to me like you are describing stop limit orders.

 

If your OEC DOM is set as describe in post 1 (which is the default), moving your mouse pointer on the bid ladder above the current price will give you 2 options:

Right click: limit

Left click: stop

The buy stop order is the right command use to catch the train up at a defined level.

My question is why someone would use a limit order above the current price?

What's your opinion?

Share this post


Link to post
Share on other sites

The buy stop order is the right command use to catch the train up at a defined level.

My question is why someone would use a limit order above the current price?

What's your opinion?

Allow Limit above Market is nothing funky. In theory there is no need for this because you could as well use a market order. But think of volatile times when bid/ask is moving too fast to follow and you want a tight entry at a certain price level or better. Without this feature everytime you enter the limit above market (by accident) it would get rejected. By using Allow Limit above Market you will get the fill at the best ask (if long) or bid (if short) but never worse than what your limit was. You can't ensure this by using market orders.

Share this post


Link to post
Share on other sites
If your OEC DOM is set as describe in post 1 (which is the default), moving your mouse pointer on the bid ladder above the current price will give you 2 options:

Right click: limit

Left click: stop

The buy stop order is the right command use to catch the train up at a defined level.

My question is why someone would use a limit order above the current price?

What's your opinion?

 

It's actually left click limit and right click stop on my end. Not sure if you are able to reverse those or not.

 

If you send a buy limit ABOVE current price, you will be instantly filled at that price OR better. That's what a limit order is - fill me at this price or better.

 

Test it out on the demo and you'll see what I mean. You send a buy limit above the current price and you'll basically be buying the current price, possibly with slippage. That's all.

 

You can use this when you think sending a market order will get you a very poor fill - so you send a limit to the exchange saying - fill me here OR better and I'll be happy.

 

To get a fill that says - only fill me if this price is hit - then you use a buy or sell stop order. You can use a stop market order or stop limit order from there.

Share this post


Link to post
Share on other sites
If you send a buy limit ABOVE current price, you will be instantly filled at that price OR better. That's what a limit order is - fill me at this price or better.

 

I did experiment using the demo; the fill was at the entered price, whatever it was 1, 2 or 4 pips above. I will test a bit more, just curious!

Also in that case will the buy above price be filled from the respective ASK pending position or from the ASK first on line (last ASK)?

Share this post


Link to post
Share on other sites
I did experiment using the demo; the fill was at the entered price, whatever it was 1, 2 or 4 pips above. I will test a bit more, just curious!

Also in that case will the buy above price be filled from the respective ASK pending position or from the ASK first on line (last ASK)?

 

If you sent a LIMIT order above for a buy or below for a sell, it fills right away on OEC. Did you turn something else on? Are you sure you aren't sending a BUY STOP or SELL STOP order? B/c a buy limit order sent above will fill right away; vice versa for a sell. That's how the orders work. Take a screenshot so I can see what you did b/c based on what you said so far, it doesn't make sense at all.

Share this post


Link to post
Share on other sites

You are right the fill is not pending, it occurs at the price entered, I have to test a bit more , not a big deal as it’s not a command I use, I was just curious to find out if others traders were using it and if it could be of any unknown, effective use :-)

Share this post


Link to post
Share on other sites

I’ve done couple more tests, the behaviour is as you described going long or short I got filled instantly at market. When the market is more active it could end up in different results, I’m not sure as I got filled 2 pips away previously two days ago.

Thanks brownsfan your help was appreciated.

Share this post


Link to post
Share on other sites
I’ve done couple more tests, the behaviour is as you described going long or short I got filled instantly at market. When the market is more active it could end up in different results, I’m not sure as I got filled 2 pips away previously two days ago.

Thanks brownsfan your help was appreciated.

 

In essence you are sending a market order but with a restriction. That's it. If you got filled away from the market, it was still a good order although it may have looked like a crap fill.

 

If you want to get in right away w/o hitting the market button or sending a limit above/below, you can submit a limit order AT the current price and usually get filled.

 

Example - price is sitting on the ES @ 1103.00 on the bid side. You can send a limit order to sell @ 1103.00 or buy at 1103.25 and both will fill almost instantly most of the time. You are sending a limit order, just at the current bid/ask difference.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.