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You didn't really describe intended use. I only use a stop with limit to
_enter_ a position where I expected the stop to be run and wanted to
enter the position on a pullback to the stop level or I want to limit
the slippage over/under stop level before I get filled. I use plain old
stop to exit positions at my stop loss level ... if my stop is hit I
want OUT unconditionally ... part of the required discipline to money
management. Hope this helps.
Earl
----- Original Message -----
From: "Gram" <gramario@xxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, June 15, 2000 10:29 AM
Subject: [RT] R: R: STOP LIMIT
>
> Gram,
>
> [] Read Dennis Holverstott's reply.
>
> > [] Mark
>
> Tx. for your reply. I have read it, I also appreciate it greatly for
its
> conciseness, even though I was already aware of this in principle.
> AM I to assume then that:
> "The STOP LIMIT ORDER (on which several writers have spent realms, Joe
Ross
> springs to mind, for example) cannot be used as they describe and
namely,
> for the purpose which I described in my email of this afternoon."
> Agreed everyone? Or can we use the STOP LIMIT to deal with some
situations
> and, if so, which?
> Altenatively, if the STOP LIMIT has no use, let's abolish it from the
> vocabulary!
> Regards,
> Gram.
>
>
> >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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