10 point slip on commex gold?

Discussion in 'Order Execution' started by Razorsharp, Jan 20, 2010.

  1. Hello,

    I wanted to ask everyone's opinion on this issue?

    I took a trade the other day set my stops, everything looks ok.
    a few minutes later my stop is executed 10 points away from where it should have been executed. This is with a major futures trading firm btw.

    the trade was only 1 contract.

    I know slippage is common. But on GOLD and with such a large number?

  2. ess1096


    Trading YG or GC?

    Slippage like that is common on YG when using stop/market orders. Should always use stop/limit orders regardless of the contract you are trading.
  3. It was a GC, and the order was a sell stop. I guess i have to change to limit.
  4. ess1096


    That is a lot of slippage for GC. That sucks.
  5. Yeah i know.

    I have been slipped before a few points here and there so i understand its a natural byproduct of trading.

    But 10 points on such a liquid instrument just seems a bit excessive.

    And this is the london, US sessions so its not like there isn't any volume LOL.

    I am wondering if it has happened to anyone else.
  6. there should be a rule agains this kind of thing.

    This was only 1 contract and they could not execute it?

    At that particular time there was 400+ contracts traded.

    And they could not fill my order?

    Sounds ridiculous. I thought this kind of shit happens in retail forex lol.
  7. The GC trades on Globex. Your stop market order will have been executed according to the Globex matching engine's rules. If you haven't already checked these out it is worth it to gain a full understanding of how the engine works and the matching algos used. I suspect you were slipped because your stop order was bunched with a load of other stop orders which temporarily cleaned out the book and your order was at the back of the stop order queue. I further suspect that with such a concentration of stops there were probably more than a few other market participants gunning for those stops. Did the price reverse soon after your stop was taken out?

    As suggested you might find marketable limit orders a better option in such situations.
  8. After that price kind of stabalized and droped again.

    The contract i traded was comex GC, that is what is says on the platform.

    i guess i should read that document you are reffering to but i never expected that kind of slippage in my life under normal trading conditions.

    thanks for the reply.
  9. Could you share the date and time of the trade and the name of the broker?
  10. trade was arround 9:10 am est. no news no nothing.

    what gets me is how am i suppose to manage risk when the stop is 10 points and it gets executed at 20 LOL!

    I mean that kind of baffles me.
    #10     Jan 20, 2010