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Offshrtrst@xxxxxxx wrote:
> In a message dated 97-08-08 20:39:03 EDT,
> efrain12@xxxxxxxxxxxx (Efrain R
> Portales) writes:
>
> <<
> Hi Philip,
> I'm a futures day-trader and use stops with my trading.
> Can you please explain more in detail how this works in
> the pits?.
> Say I place a market order to go long U 97 S Francs at
> 6600, get
> filled at 6610, then I place a stop loss to sell at 6595.
>
> Question : is a floor trader going to be yelling trying
> to sell at
> 6595 ( which is my stop and probably there are dozens or
> hundreds at that price ) ?. If it's legal to do that,
> it's unfair,
> because if all the stops are known among the floor
> traders,
> that very same fact would work like a "magnet" to pull
> prices
> down ( in this case ) to where the stops are significant
> and
> "sweep the stops", putting me / us out with a loss. >>
>
> It seems to me that this is the way it works! My Broker
> told me so!
> He has even warned me about the "Spread Pits" that they
> can do what
> they want, stopping you out with a loss! Hence the need
> (and pocket)
> for a deeper stop loss.
>
> Regards,
> SRR/arr
>
> *******
> **********************************************************************
Your broker is wrong. On a stop order there is no order
until a sale takes
place at or below your stop price. Until he has a good
order he should not be
broadcasting your order to the pit.
I'm not saying that such things don't take place because the
rules are bent.
But I'll guarantee you if I had any indication that such
things were
taking place, my account would be out of that firm the next
morning. I
had a suspicious fill awhile back and the broker gave me the
price
I thought I should have had. It cost him a couple of
hundred out of
his own pocket to keep my a/c. They know I watch them like
a hawk so I don't
have many problems with my fills. The commodity brokers
have had a
tough time the last few years with declining business. You
don't have
to put up with hanky panky. Get a new broker. Especially if
your dealing
with Lind-Waldock.
And don't rely on a commodity broker for recommendations.
If you don't
know what you are doing on your own you don't belong trading
commodities.
Commodities are a zero sum game and you need the cheapest
commissions
to survive
I know this sounds hard but commodity trading is not a
gentleman's sport.
Bob Doeden
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