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Peter2150@xxxxxxx wrote:
>
> In a message dated 97-11-08 20:31:33 EST, cpbow@xxxxxxxxxxxxx writes:
>
> > I don't know about market orders, but back when the emini started, I
> > asked Jack Carl if stops were taken in the emini. My broker said yes,
> > but that if the price went more than 4 tics or points (can't remember if
> > he was saying tics or bigpoints), then it became a limit order. Of
> > course this conversation was about stops, not mkt orders. I can't
> > contribute more because I don't trade stk indices, but I thought I'd
> > mention it since it was from Jack Carl. They didn't just make this up
> > to cover the recent volatility.
> >
>
> Hate to say it but this doesn't make a bit of sense. First Globex perse
> doesn't take stops. Jack Carl might take them and they are essentially
> watching for you, and then and executing the order for you. As for a stop
> becoming a limit after 4 whatever that makes no sense. If I am long at 950
> and want a sell stop at 948 fine. But if it gets to 947 before they can fill
> it then it would become a sell one at 947 or better. Might never be filled.
> If thats what Jack Carl is really doing don't trade with them.
Hate to say it, and even though you think it doesn't make sense, this is
all correct. The broker is kind of telling half a story, but the rest
is true. There are no stops and no market orders allowed on Globex.
Some brokers are accepting stops (which is a market order in the end)
that they watch themselves and brokers are saying they take market
orders, but they are not true market orders.
Market orders on Globex are really 4 tick (1 point) limit orders so yes,
you can be unable on an order you place as a "market" order. Not even
all brokers are fully aware of this but if you are trading in these
volatile times, you should be aware of it.
This is one of the current limitations of electronic trading. It is
there as a protection for the customer so you don't pay way up
unintentionally when the market is thin.
Eric
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