|
PureBytes Links
Trading Reference Links
|
Morris:
I'm not sure I understand your point. The original thread came from us comparing
the type of exchange regulated orders accepted by brokers on S&P orders versus
E*Minis. I know a few people here have stated that their broker would accept a
'stop' or 'market' order on the E*Minis, and though in most ways, that is what
their broker is providing them with, in truth, these are not exchange regulated
stop or market orders. These are orders that are executed basically with
discretion and therein lies the problem with relying on the money management
aspect of these synthetic orders. IF the market gets ugly, and your broker has
problems executing your order or cannot fill your order for quite some time, if
you have been relying on these synthetic stop or market orders, you will not
have the ability to demand a fill based on time and sales and you also will not
be able to enter arbitration to get an adjustment from your broker.
My point is, there are times when the slippage you incurr when your stop is
filled is minimal--at least you are out of the market. If you find you are still
long because the synthetic order was not executed and the market is now 25 or 50
big figures lower, you have incurred no slippage, but you may have finished your
trading career. That's why it's imperative to trade with stops, be prepared for
the worst, and keep that lucky penny all shiny...
Tim Morge
IdontgetNo@xxxxxxx wrote:
>
> No I didn't say that. What I did say was that just because his broker takes a
> stop and most others don't, this means that you are creating a slip market.
> Because currently you can only Buy or Sell the E-mini. You buy at YOUR price
> and sell at YOUR price. No slippage there. Now execute stops and there goes
> the slippage.
>
> Morris
|