IB just sent the following message : -------------- Dear Trader, Please be aware that the following order(s) have been canceled at the request of the Globex Control Center. The order(s) were: Buy # GEZ5 @ 96.15 Globex has determined that the limit price is outside of the allowable order range. Regards, ------------------ 96.15 was the limit part of my stop limit order. I checked the CME website and it says for GE the GLOBEX price limit is 200 points. I'm confused about this price limit. Is 200 points= 0.2 GE points? And relative to what, previous day's close? Can somebody please clarify. Also, I always use the same stops away from the market but today it got cancelled three hours after GLOBEX accepted it.
it means that there is a limit on the amount price may move in any session. in this case it is 200 pts - they probably mean 200 ticks as ed can only move between 00.00 and 100.00. it has nothing to do with stop or limit orders. as ge moves like a rhino after a bucket of ketamine, i dont really see why a stop limit order would be needed - unless entering in a report - in which case you are probably trading in a fast market - brokers will not be liable for any fill during officially designated fast markets. (i believe - could be wrong on that)
The Globex page says: Point description: 1 Point = 0.01 = 25$. See http://www.cme.com/trading/prd/contract_spec_ED3087.html This looks pretty wide. regards Bernd Kuerbs
Thanks for that link. Indeed, it's wide. My limit portion of the stop-limit was only about 0.3 away from the market. Edit: I just sent an e-mail to IB asking for details. Anyway, no harm was done and I re-entered the order manually. Initially , I thought my API link software was doing something bizarre.
I always use stop-limits with my GLOBEX orders. It's my trading style and prevents any hesitations. It's essential for my sanity...
After going back and forth between IB and Globex for the last couple of days, my mystery is solved. The limit and stop trigger prices in my stop-limit order was fine but the distance between them was too much. I had 40 ticks between them and that's why the order was rejected (although it was never rejected before). Anyway, I was told that 20 ticks should be OK. The attached document gives "banding" limits for each product.
I haven't had much luck trading the ED outright and have been thinking about spreading it against the 5 yr note? Anyone care to share any thoughts on this?
steady-as-it-goes You are basically trading interest rates. Why not spread emà Ed/Ed? You will get a higher return on margin (Rom) using the same market.