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Kate,
1) you should find info somewhere in the bowels of the exchange web site. As
far as I know, there is no execution advantage to using stop limit orders
with the NYSE, NASDAQ, and AMEX exchanges. Electronic stock exchanges may be
different. Some electronic futures exchanges differ.
2) consider the purpose of a "stop" as a cash management discipline. If you
are willing to gamble on a rebound and deal with the psychological
difficulty of trying to trade out of a position you shouldn't be in, then by
all means use a stop limit to eliminate the bad fills. If you wish to
enforce discipline in closing out bad trades, than take the good fills and
bad fills and move on to the next trade where you have an opportunity to
earn a profit.
3) there are a couple of electronic exchanges which are unreliable ... I am
constantly getting IB bulletins on outages at ARCA. I have had "smart"
orders hung up because of ARCA problems so I watch my executions carefully
when trading stocks. OOH, I have had "smart" executions much better than the
b/a spread.
Earl
----- Original Message -----
From: "ketayun" <ketayun@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, February 24, 2003 5:42 PM
Subject: Re: [RT] Interactive Brokers
> Earl,
>
> Thank you very much for your detailed reply.
>
> > 3) Keep in mind with stop limit orders that the priority and execution
may
> > vary from exchange to exchange so make sure you know what the
> > parameters of
> > each order type is before you use it. Normally, a stop should get you
out
> > ... period ... so one would use a stop limit order only when there is an
> > advantage in execution.
>
> 1) How/where does one find out about the parameters/priority executions
> with the various exchanges?
>
> 2) Use a stop limit usually to avoid the bad fills of stop market. In
> your experience trading SPY's what was the best order type to use as a
> stop loss? You did mention that you use 'smart ' as the best route for
> placing orders.
>
> Good Trading and Thanks again,
>
> Kate
>
>
>
>
>
>
>
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