Busting trades how specifically?

Discussion in 'Order Execution' started by dandxg, Aug 4, 2006.

  1. After this morning's CBOT outage, sorry to those whom are getting hosed, I feel the need to better educate myself so please help if you would.

    If I had been trading ZG I would have shorted at 10:30 EDT at the low at 660.20 SL. The last print I have on my charts shows 660.40 before the exchange went down. If after the ECBOT went down it traded through my price would they have busted the trade because the exchange down apparently before it hit my order? Am I getting it? If not please kindly inform. Thanks

  2. alanm


    How could it trade through your price if the exchange was down?

    Whenever there is a trading disruption, you need to know exactly what happens with pending orders (usually by calling your broker). In general, if there are long outages, I'd expect them to either cancel all orders, or to do a re-opening cross (depending on the exchange) to avoid people picking off now-mispriced limit orders when it re-opens.