Globex -- limits, stops and limit-stops

Discussion in 'Index Futures' started by aphexcoil, Nov 16, 2002.

  1. I understand that if ES is trading and I put a limit order in, it is FIFO.

    However, if it is trading at 900 and I want to buy at 905 and want to be first in line to do so, will a stop-limit work correctly? I'm assuming Globex handles stops sitting at a certain price to turn into market orders when that price hits. I don't want that to be the case. I want to be first in line at 905.00 when the price gets up to that area and I want a limit order there.

    How does Globex handle limits, stops and stop-limits precisely?
  2. def

    def Sponsor

    Globex doesn't support the type of order you are seeking.

    Limits: FIFO
    Stops : doesn't support them
    Stop Limits: If your stop is triggered, a limit order is sent. If the limit is far enough from the trigger, it can effectively be a market ordder.

    Note: Globex will also cancel GTC orders if they deem at their discretion that they are outside of a given range.
  3. def,
    Do you have a Globex/CME link detailing this?
  4. I thought you said in a previous message that STOPS were now held native on Globex and not IB? Now Globex doesn't support them?

    Globex will cancel a GTC? That's good to know!
  5. Minime


    Maybe I don't understand what your saying Def, but I place Native Stop Limit orders more than 5 points away from market using IB, and haven't had a problem? I use them instead of the Stops that reside on IB servers in case IB goes down. I also set the election price and the limit price about 3 points apart (away from market) in case it tries to blow past my stop (but I normally get my election price). I have had 100% success in getting filled with these since stops went native. Are we talking about the same type of order here? Sometimes I go 8-10 points above the market for Buy Limit Stops and the same the other way?

    On a related note, when I want filled on the ES manually going for instance long, I place my Buy limit order a couple points above the market and transmit. 99.9% of the time I'll get the current ask price for my fill. But doing this is like a market order where it guarantees a fill at current market but no worse than your predetermined limit. ES and NQ are so liquid and the execution algorithm is so fair, that this works well.

    Am I at risk here of having my orders cancelled if they get too far from market? Or are you talking about nailing the Ask several levels above the current market like you can with stocks?
  6. def

    def Sponsor

    should have been clearer - globex stop limits are native.
  7. So if I put in a simple "stop" order and IB's connection to Globex goes down, my stop will never execute?
  8. def

    def Sponsor

    AFIK, globex does not support market orders. Thus, you need to enter a stop limit to get onto globex servers. (if you want a true market stop, just enter a large limit).
  9. def,

    So really the stop orders do reside on Globex servers at IB (same as stop-limit)? Than why is the differentiation in the color?
    #10     Nov 18, 2002