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In a message dated 97-11-09 00:40:03 EST, eric3@xxxxxxxxxxx writes:
> 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.
>
Okay Eric. I think I understand what you are saying. Let me ask you a
question. I am long 1 contract and I tell the broker to sell 1 at say 915
stop. It goes thru and thus has to become a limit order. Say price is now
914.00. Exactly what would the order be. Buy one at 913 or better. In
another words what price does the broker now use for that limit.
Pete
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