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Our system don't label the bids and offers into different classes, just plainly
bid and ask.
hans esser wrote:
> 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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