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From: "Andrew Nopper" <tradera@xxxxxxxxxx>
> I think that the two of you may be talking at cross purposes. Hans is
> right that a buy limit placed above the market is "bullshit". It will
> work without a doubt, but then it's a market order in reality, and
>anyone in their right mind wouldn't go through the extra steps
> involved in placing a limit rather than a market order. However,
> as Jeff pointed out, this IS what happens to a market order when
> it gets into Globex. As Globex does not natively handle
> market orders, the market order to buy is converted to a limit order
> at (generally) 10 handles above the market, thus ensuring an
> immediate fill even in fast markets.
>
> Seems like everyone is right. :)
>
> Andrew
You and Hans are wrong.
Globex takes market orders and converts them to limit orders at the
current bid or offer. It doesn't convert them to limit orders above or
below the market and there is no guarantee you'll be filled on a market
order sent straight in to Globex. If you place an order to buy 20 NQs at
the market and the current offer is 5 at 1200, you'll get 5 at 1200 and
be left with a buy limit order for 15 resting at 1200.
Having said that, it is true that some brokers offer order entry
software that will convert your market orders to buy or sell limit
orders outside the bid/offer to increase your chances of getting filled.
But Globex doesn't do it for you.
If you use your own order entry software, as I do, then you'll find
these types of orders - buy limits above the ask and sell limits below
the bids - useful and even indispensable at those times when you need a
fill, so you and Hans are way out in left field when you call them
"bullsh*t" orders.
Dave
> ----- Original Message -----
> From: hans esser
> To: omega-list@xxxxxxxxxx
> Sent: Monday, June 03, 2002 11:23 AM
> Subject: Re: Bad ticks caused by Wrong Orders
>
>
> > Jeff,
> >
> > thanks for fedback.
> >
> > I talked to my broker and he assured me that a buy limit order
placed
> above the
> > market on Globex will be executed right away.
>
> OFCOURSE it will - because the order is bullshit
>
> What you plan to do above the market is a BUY_STOP order and nothing
else
>
>
> rgds hans
>
>
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