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FELIX wrote:
> Pardon me guys, as am an electronic trading system user. I can't/don't see
> how we could ever know if an order is a stop order or not, even if it is
> posted in the system.
obviously we assume it would be labled as such or will be
SELFEXPLANATORY (see below) - if the market is at e.g. 107900
there might be orders in the book - (just seeing the UPPER range)
....
SELL 10 108100 LIMIT
SELL 20 108075 LIMIT
SELL 8 108050 LIMIT
SELL 5 108025 LIMIT
SELL 10 108000 LIMIT
....
and with a STOP BUY it might look like
SELL 10 108100 LIMIT
SELL 20 108075 LIMIT
BUY 7 108050 STOP <<<<<
SELL 8 108050 LIMIT
SELL 5 108025 LIMIT
SELL 10 108000 LIMIT
even without the word STOP - its OBVIOUS that ANY buy ABOVE the current
price is a STOP and NOT a LIMIT (to sell) - in a proper market/ electronic
system
> Our keyboard puncher just post the order in his
> terminal. Not even he knows whether that specific client is putting that
> order as a stop (to protect his capital), or cover his positions or just
> simple buying of longs.
sure does: Bascily
a SELL *ABOVE* current price is ALLWAYS a LIMIT (to sell) !!!
a SELL *BELOW* current price should be entered as a STOP
> No one can make/knows the difference except only
> the clients and he can call any time to cancel it.
What you mean is: if SOMEONE buys 10 ctks, *you* dont know whether he is
AFTERWARDS long 10 or whatever - as he could have been 20 short before -
or 50 long before already - you cant know what his position is - but you sure
know what the order is !!!!! Buy 10 AT LIMIT BELOW the current market - or
buy 10 ON STOP above current market
> Sometimes our clients
> posting of the buying is a bit further than the current bid, is because
> they are behaviorally cheapskates or chicken or because of the technical
> method told them to buy there. As brokers, we don't know/we don't care why
> they placed it there. All we see is a bunch of bids and their quantities
> at three different price levels. The only way/reason I can think of,
> whether that order is a stop or not is through my own technical studies
> and a big bunch of orders are placed there by all the different
> brokers/terminals( all I get is just confirmation of my studies,thats
> all). And you have to know what to do to try to make money out of that
> information!!! Usually its more of balls than brains.
well, agree on your last sentence :-) strangely this discussion on what is a
LIMIT order and what is a STOP order comes up here every 6 month :-))
......and no, Im not telling anybody what a STOP LIMIT order is - ask your
broker
rgds hans
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