05-10-2010, 08:48 AM
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#83 |
Join Date: Feb 2008 Location: Germany Thanks: 103
Thanked 171 Times in 86 Posts
| Re: Zenfire and DTN Feed Different? Quote:
Originally Posted by BlowFish » I seem to remember that Globex was one of the exchanges that did not support market orders natively in days gone by. My broker (IB) still simulates them. What Globex now provide (according to the reference guide) is market order with protection. I am not sure when they introduced this order type but think it must be fairy recently. Before this order type was available your broker would simulate a market order by placing a limit order well inside the market. Market order with protection is essentially a limit order (with a wide limit). Market with Protection
Market orders at CME Group are
implemented using a “Market with
Protection” approach. Unlike a
conventional Market order, where
customers are at risk of having their
orders flled at extreme prices, Market
with Protection orders are flled within a
predefned range of prices (the protected
range). The protected range is typically the
current best bid or ofer, plus or minus
50 percent of the product’s No Bust Range.
If the entire order cannot be flled within
the protected range, the unflled quantity
remains on the book as a Limit order at
the limit of the protected range. | Sounds like an ordinary limit order placed at the "protective range" to me. Maybe they just had to give it a fancy name to make those traders happy that "need" market orders but don't know they can accomplish the same thing with a limit order.
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