trading cocoa! if you ever get the desire to trade cocoa - find your neighborhood drug dealer and smoke whatever he's selling!
Comex is owned by the CME Group and the electronic GC contract trades on the Globex platform. http://www.cmegroup.com/trading/metals/precious/gold_contract_specifications.html In all seriousness, you really should know everything there is to know about a contract before you risk a single lot on it. The opening of the pit session can sometimes cause the order book to get really thin and things to bounce around, but if your transaction was at around 8.10am CST then this clearly isn't the reason. I am curious about this one. Can you answer the following questions and I'll have a look the T&S and order book data: 1. What contract are you trading? I'm assuming here that you are trading the G (Feb) contract. 2. What was the stop price of your order? 3. What time did you enter the stop market order with Globex? I'm assuming here you placed the order with the exchange and didn't simulate it on your local machine. 4. What time did the order get executed? (down to the second) 5. What price did you get executed at? Looking at the past week's chart I can see that there would have been a load of resting sell stop orders around the 1125 level as it has offered significant 'support' over the last few days. A lot of those orders would have been entered several days ago so your intraday order would have been at the back of a very long queue. If I'd have been short the GC yesterday morning I'd have been gunning for those stops. I suspect there were no dirty dealings here. Sadly, you just got played...
OK, just had a look at the data for that time. Looking at the timestamps of the trade prints it looks like you got hammered by a cascade of sell stops. The book was thin on the bid because I'd imagine most the MMs could see the set up coming a mile off. All the other pros were either already short or standing on the sidelines waiting to see what would happen. If I can give you any advice here it's to always be aware of likely stop order density and the fact that your order will join the back of the queue. People will have been adding orders to the stop order book around this price level since at least last Wednesday. All the pros can see this and it represents easy money for them. Best of luck next time.
how can u see that? can u send me a screen? if there were a lot of stops shouldn't then price rebound hard? Thanks!
GC spread is definitely not 10 ticks. But yea, slipping 10 ticks in a fast moving market... I don't think you have much to complain about. And keep in mind we're talking about 0.09% slippage.
Well regardless, I think this was a good discussion. Wanted to get some opinions and see how other traders look at this kind of slippage and it seems within normal so that is what i wanted to find out. Thanks!