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In a message dated 98-07-23 12:05:46 EDT, tgparker@xxxxxxxxxxxxxxxx writes:
<< wenn Ael Gautier et al:
arb suggested that the placing of Stop Limit Orders might improve
the chance of getting better fills in the New York markets.
Would such a strategy also be good one in a slow or illiquid
market?
What do you see as the down side of a Stop Limit order as opposed
to a simple Stop Order.
>>
Pretty straightfoward.
Stop order will get filled as a Market order ( the offer side on a buy stop)
and you most likely get that"bad fill"
Stop limit orders may or may not get filled and can only be filled at the
limit price or better. In a fast market the price can move away from you and
you won't get filled.
I always make it a point to "feed the fish" on my Stop limit orders. This
gives the clearing firm some room to manuever.
For a stock my stop order might read: Buy 1000 Dell @ 110 stop/ limit 110 1/8.
the order will get filled at 110 1/8 or better, but still has the potential of
not getting filled in a fast market.
This simple strategy has helped me into a position I would not have gotten
into with a straight stop limit price of 110.
It has also given me fills on stocks when the trading desk tried to wiggle out
of a "painful fill".
Keep the fish happy and it will help keep the sharks at bay.
BTW does anyone know if Ty Corp. is a public traded company?
Beanie Babies are now being sold at Pawn shops here in Louisville, which means
they can now be used as collateral on a loan.
Sits right up there with AMZN.com for the silliness award. To think that a
mail order catalogue company will outperform a bookseller where people can
look at the book and bring it home with them is absolute nonsense. Bought
August 150 Puts today at 26. First target on the stock is 100 for a double.
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