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Gram,
You said
The whole point of my using SWL is see
prices TRADE THROUGH.
In that case, don't use a stop with limit order. Just use a regular stop
order and drop the price by one tick.
Mark Morrison
PMB, Inc.
> -----Original Message-----
> From: Gram [SMTP:gramario@xxxxxx]
> Sent: Thursday, June 15, 2000 10:42 AM
> To: realtraders@xxxxxxxxxxxxxxx
> Subject: [RT] R: STOP LIMIT
>
> I take your point, as I forgot the Bonds do not take SWL, but it was an
> example so we can consider it as COMEX or any exchange that does.
> My thinking was closely to what IRA wrote about two minutes ago.
>
> As to your rhetorical question when you wrote:
> If the Bonds open at 97-07, and you tell me to sell at 96-25 stop limit, I
> would wait for Bonds to trade at or through 96-25, and then I would place
> an
> order to sell at 96-25 limit. If you happen to get filled better, let's
> say
> 96-26, when you should have been filled at 96-25, would you complain?
>
> I do not really want to be filled at 96.26 instead of 96.25. I prefer
> 96.24
> (but no further). Being filled at 96.26 in this kind of situation only
> increases the chance of whipsaws. The whole point of my using SWL is see
> prices TRADE THROUGH.
> Best,
> Gram.
> -----Messaggio originale-----
> Da: Mark Morrison <mmorrison@xxxxxxxxxx>
> A: Gram <gramario@xxxxxx>
> Data: 15/06/2000 17:29
> Oggetto: RE: [RT] STOP LIMIT
>
>
> >Gram,
> >
> >They don't take STOP LIMIT orders in the Bond pit, so as a full service
> >broker, I would do the work myself. Let's start with some definitions:
> >
> >A MARKET order is an order to buy or sell immediately, regardless of the
> >price.
> >
> >A LIMIT order is an order to buy or sell at a certain price, OR BETTER.
> >(Lower is better for a buy, Higher is better for a sell.) In other
> words,
> >"limit" means "that price or better".
> >
> >A STOP order is an order to buy or sell at the market once the market
> trades
> >at or through the stop price. Since it becomes a market order, you may
> get
> >filled at the same price, a worse price, or a better price. Usually you
> are
> >filled at a worse price. That is called "slippage".
> >
> >A STOP LIMIT order is an order to buy or sell at a certain price once the
> >market trades at or through the stop price. It is similar to a regular
> stop
> >order in that it is contingent upon the market trading at or through a
> >certain price. But it is different than a regular stop order in that it
> >becomes a limit order (or better order) rather than becoming a market
> order.
> >
> >If the Bonds open at 97-07, and you tell me to sell at 96-25 stop limit,
> I
> >would wait for Bonds to trade at or through 96-25, and then I would place
> an
> >order to sell at 96-25 limit. If you happen to get filled better, let's
> say
> >96-26, when you should have been filled at 96-25, would you complain?
> There
> >is no other way to do it, that I know of. The floor broker in the Bond
> pit
> >will not accept that type of order. I would have to do this manually.
> >
> >I hope this answers your questions.
> >
> >Mark Morrison
> >PMB, Inc.
> >
> >
> >> -----Original Message-----
> >> From: Gram [SMTP:gramario@xxxxxx]
> >> Sent: Thursday, June 15, 2000 9:47 AM
> >> To: Mark Morrison
> >> Subject: R: [RT] STOP LIMIT
> >>
> >> But this is a STOP LIMIT, not a LIMIT. Neither is OR BETTER REQUIRED. I
> am
> >> giving an order to sell at an exact price, no other price being
> accepted.
> >> And as it is a sell, prices should be above (not below).
> >> Don't you agree?
> >> Gram.
> >> -----Messaggio originale-----
> >> Da: Mark Morrison <mmorrison@xxxxxxxxxx>
> >> A: gramario@xxxxxx <gramario@xxxxxx>
> >> Data: 15/06/2000 14:47
> >> Oggetto: RE: [RT] STOP LIMIT
> >>
> >>
> >> >Gram,
> >> >
> >> >If the market opens at or below 96-29, I would place an order to sell
> the
> >> >Bond at 96-29 limit (o/b). If it opened above 96-29, I would set a
> low
> >> >alert on my quote machine to beep when the market traded at or below
> >> 96-29,
> >> >then place the order to sell at 96-29 limit.
> >> >
> >> >Mark Morrison
> >> >PMB, Inc.
> >> >
> >> >
> >> >> -----Original Message-----
> >> >> From: Gram [SMTP:gramario@xxxxxx]
> >> >> Sent: Thursday, June 15, 2000 6:41 AM
> >> >> To: realtraders@xxxxxxxxxxxxxxx
> >> >> Subject: [RT] STOP LIMIT
> >> >>
> >> >> Hi,
> >> >> just wondering if you fellow RT's can clear up something.
> >> >> If I call my broker beofre the market opens today (15th June, 2000)
> and
> >> >> give the following order:
> >> >>
> >> >> SELL x lots US T Bonds, US0900, @ 96.29 STOP LIMIT,
> >> >>
> >> >> how should he behave after:
> >> >> 1/. the market opening above this price?
> >> >> 2/. the market opening below this price?
> >> >> 3/. the market opening at this price?
> >> >>
> >> >> Good trading.
> >> >> Gram.
> >> >
> >
>
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