|
PureBytes Links
Trading Reference Links
|
At 06:25 PM 8/27/98 -0400, Peter2150@xxxxxxx wrote:
>In a message dated 98-08-27 17:32:10 EDT, Nchrisc@xxxxxxx writes:
>
>> Now I am not a litigious sort of fellow, (and the $$ I lost due this was
>> very
>> small) but at some point the CME has got to take responsibility for this
>> thing
>> that they have created. From what I saw, it appeared as though the
>computer
>> (or someone ?) pullled the plug on the stop/market subroutine when the
>> market
>> was in climax selling mode -- I am sure customers lost millions, if not
10s
>> of
>> millions due to this.
>
>This is not an issue with CME, but with your broker. Until Globex2 is fired
>up in Sept. the ONLY type of order that can be placed is indeed a Limit
>order. When you place a market order, the broker's terminal operator enters
>it as a limit order, hopefully for rapid execution. If your broker accepts a
>stop order, it isn't entered, but he monitors the market, and when the price
>hits your price, he then enters the order as a limit order to get you out.
>
>This at least is my understanding, both from my broker, and his terminal
>operator.
>
> Pete
This is absolutely correct. Furthermore, if you check with brokers that do
accept market orders and stop orders, you'll find that they are accepted on
a "Not Held" basis; i.e., you can not hold the broker responsible for
EXACTLY this sort of situation.
Allan
|