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> Yesterday morning I placed an order to sell the e-mini. About a minute
> later price zoomed through my stop and I thought I was short. Several
> minutes later, with price still sliding down, I exited half my
> position. A few minutes later my broker called and said that my
> original sell order had been "rejected." I was not short; in fact at
> that moment I was now long. I exited with a small loss. What does
> "rejected" mean?
>
> I thought if price went through your stop you were filled at the
> market.
Yup. The problem is many brokers use the default TOPS setup. Last time I
checked, a "market" sell order is really a limit placed 2 big points
below the current price. Orders are filled first come, first served. If
there is a big news event and the price moves fast with lots of orders,
it may move more than 2 points before your order works its way to the
top of the stack so you don't get done. Some brokers have modified their
e-systems to use 4 points instead of 2 to help eliminate those problems.
Whatever the esoterica of the broker's order routing, it shouldn't be
the customer's problem. The broker gets paid to make sure you get a fill
when you place an order. You deserve a fill no worse than the lowest
tick before first uptick. If the broker won't make it right, it's time
to move on and find a new one.
--
Dennis
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