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that might be true. no idea. i did not even realize that mid-am trades
currencies. if it is project-A, which is the cbot overnight machine -
and midam has a connection with cbot -- no stops are available.
al neubauer wrote:
>
> 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
--
Steven W. Poser, President
Poser Global Market Strategies Inc.
http://www.poserglobal.com
Tel: 201-995-0845
Fax: 201-995-0846
Email: swp@xxxxxxxxxxxxxxx
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