Guaranteed trading

Discussion in 'Retail Brokers' started by seleukos, Feb 26, 2009.

  1. seleukos

    seleukos

    :confused:
    We would know if there is some platform or some broker who guarantees the following:
    we send the order (i.e. buy two mini-sp contracts at market, with stop loss 1% below) and we are automatically guaranteed that the stop is in place. That is, from start to end our order SHALL be protected.
    It seems that around there are no guys that accomplish with this simple question.

    Many thanks in advance.
     
  2. seleukos

    seleukos

    Thank you for your reply, but I think there was a misunderstanding. The issue is not to have a guaranteed price, either for buy or stop loss; rather, we would like to be sure that both orders are in place, i.e. received together by the broker/FCM.

    For example, say I send the two orders from my PC, buy and stop; apparently they are sent together, but what really occurs in most platforms is the following:
    1) the buy order is sent to the exchange, and a Fill message for the buy only is received from the platform on your PC;
    2) the Fill status for the buy order is acknowledged, and only after that the stop is sent to the exchange from your PC. Note there is a temporal delay between 1 and 2.

    If the network connection is lost for some reason between 1 and 2, you will lack the stop order and your position is not protected. Very, very unhealthy situation.

    What seems unbelievable is that this simple problem is totally neglected. Is there some counterpart that can solve this problem? We repeat, we do not mean to have a guaranteed price.
     
  3. lescor

    lescor

    Read the fine print of any broker agreement. No one will explicitly guarantee anything. If anything goes wrong, it is always the trader's responsibility.

    Their software and system may be designed to do what you want, and it may work almost all the time. But if something screws up, it's a "shit happens, sorry" situation. That's just the way it is in trading.
     
  4. bighog

    bighog Guest

    You can write the broker within a 5 day period to tell them what your complaint is and you can be assured they will have their Legal Dept go over your written words very carefully and indeed after chewing on your problem and complaint and tossing it around the office for different opinions you will get a written response that usually goes like this. ........... TOUGH SHIT!!!!!!!
     
  5. kanonka

    kanonka

    I know for sure 2 brokers that do that:

    MBtrading (they call it "plus" order)
    Ameritrade (they call it "bracket" order)
     
  6. bellman

    bellman

    I don't think the OP understand how a stop loss order is executed. It doesn't sit on the exchange, but rather on a server somewhere waiting for your stop loss criteria to be met.