Re: overnight markets

[al neubauer <neubauer@xxxxxxxxxxxxx>]

thanks to all for the great response. ive talked to my broker and he
does takes orders on the exchange for physicals market,but i have small
account so only trade mid-am. he says the efp is sized at the full
contract. is this correct? again, thanks to all who replied.
 
al neubauer
neubauer@xxxxxxxxxxxxx



Mark Morrison wrote:
> 
> I'm surprised.  I thought all brokers took stops in overnight
> currencies.
> As John Lothian has already mentioned, just tell the broker you want
> to
> place a stop in the EFP (Exchange for Physicals) market.  You should
> specify
> whether it's stop bid or stop offer.  Here's how:
> 
> Suppose you are short 1 March Yen, and you want a buy stop at 9025 for
> protection.  Tell the broker:
> "I have an EFP order.  I want to BUY 1 March Yen at 9025 stop on the
> bid."
> OR
> "I have an EFP order.  I want to BUY 1 March Yen at 9025 stop on the
> offer."
> 
> Here's the difference:  The 9025 buy stop offer will get triggered
> first and
> will usually result in no slippage.  The 9025 buy stop bid is a little
> farther away and harder to get hit, but if it does get triggered, it
> usually
> results in 4 or 5 points slippage under normal conditions (4 or 5
> points is
> usually the bid-offer difference under normal conditions).
> 
> On the other hand, if you have a sell stop, a sell stop bid would get
> triggered before a sell stop offer, because a sell stop offer is a
> little
> farther away.
> 
> One problem you may encounter using EFPs:  The highs and lows on
> GLOBEX
> don't have to match the highs and lows in the EFP market.  These are
> two
> separate (but related) markets.  I've had stops get hit in the EFP
> that
> would not have been hit on GLOBEX.  So what I do to avoid that is
> loosen up
> my stops, and for buys, use buy stop bid, and for sells, use sell stop
> offers.  It's harder for them to hit me that way.
> 
> Mark Morrison
> mmorrison@xxxxxxxxxx
> 
> -----Original Message-----
> From: Ira <ist@xxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Friday, February 05, 1999 10:42 AM
> Subject: Re: overnight markets
> 
> >My broker doesn't either.  There appears to be no official method of
> >placing a stop on the globex or forex markets.  Some firms will take
> stops
> >on a not held basis.  I have even seen messages from traders in this
> forum
> >state that they have a broker that will take a stop.  If I want to
> trade
> >the currencies at night or overnight I just by a call or put as a
> safety
> >net and that will define my absolute risk to the penny. It does
> reduce
> >your profit a little, but it also allows for a good nights sleep.
> Ira.
> >
> >al neubauer wrote:
> >
> >> does anyone know a broker(on-line or conventional) that can place
> stop
> >> stop orders in night currency markets. my present broker doesnt.
> i'd
> >> like to trade the yen and other currencys but would like to be have
> a
> >> protective stop in at all times.
> >>
> >> any help is appreciated.
> >> al neubauer