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----- Original Message -----
From: "Joe Duffy" <joeduffy@xxxxxxxxx>
To: <omega-list@xxxxxxxxxx>; "Simon Campbell" <simtrader@xxxxxxxxxx>
Sent: Sunday, November 18, 2001 6:46 PM
Subject: Re: Profit Taking --- Round 2 --- Other Alternatives
> Joe Duffy wrote;
>
> By contrast, if you go with a firm that holds your stop orders
> locally on their servers (e.g. IB, PMBe), then the order is only released
> after the stop price is hit i.e. your order gets lowest priority and
> results in a few seconds extra delay. The potential for slippage on such
> systems is much higher than systems that let you hold stops at the CME.
> =========
> Joe Duffy wrote;
> I disagree with this. First the delay is virtually negilgable---- a second
> maybe.
The delay can be much greater - particularly in a fast market. Plus, if your
broker experiences technical problems, your stop may never even reach the
CME.
>Two, my experience is synthetic stops held on your own pc get better
> fills then stops held at CME.
This is simply not possible. Globex orders are exectued on a FIFO basis.
Your order won't begin to be transmitted until the price reaches your Stop
level. Your order will be at the back of the queue if it isn't rejected
first because the price has already moved beyond your stop level.
> Plus stops held on your own machine are NOT
> visible on a globex terminal. I have the option of going either way, and
> synthetic has worked best.
Stops are not visible on a Globex terminal. Limit/MIT orders are - and then
only if it is in first five levels. (More levels are visible on the large
S&P on the Globex in the overnight market).
Rgds,
Kim
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