Re: Stop Limit orders

[Bob Fulks <bfulks@xxxxxxxxxxxx>]

At 10:33 PM 11/9/2004, you wrote:

>Since the time works against any limit order, why do
>you want to use any limit order at all?

I don't understand the comment that "time works against any limit order".

But if you place an order at the end of a 1-minute bar (with the close = $56.54) and you want to buy if any only if you can buy at $56.43 or better during the next minute, you need to use a limit order.

>Since the stop becomes market order when the price is
>hit, why do you want to have any stop order at all?

Same reason. Limit orders are filled on a FIFO basis so if there are lots of orders to buy at some price, you may be too far back in the queue to get filled at that price.

If you must place only one order per minute and want a fill within the next minute, you have to use stop and limit orders. 

If you were using 1-tick bars on the EMini, you could always use market orders, since there are many bars per second.

Bob Fulks