Is it possible for a stop not to be hit ?

Discussion in 'Trading Software' started by neveral0ne, Apr 26, 2010.

  1. Never happend to me, but for example on big volume / heavy days, if I have a stop loss would it be possible for the price to drop past it w/o activating it ? Just a random question..
  2. Yes its possible depending on your stop, i usually put my stop 4-5 cents lower so when the price is hit i cross the market to make sure i get out. thats why i usually create LOD or HOD points anytime i use stop order.
  3. if it hits your stop price, this just means stop turns into a market (for stopmarket), or limit (for stoplimit) order.... if it's a stop market it could trade below your stop price if there were other market/limit orders ahead of you at that time.
  4. I've gotten into the habit of putting in stop limit orders . . . I may be paranoid, but the market tends to find my stop market orders with a remarkable accuracy.
  5. no I mean lets say I have a limit stop loss, is it possible for the price to burst right thru it w/o me getting out/filled ?
  6. yes, because if there are tons of orders in front of you... those may be filled first.... sometimes at better prices than your order.

    however if there is enough matching volume, in your scenario.... you should eventually get filled and possibly at a better price than your order.
  7. hell yes. if you have a stop at 1200 and we have another 911 attack plan on getting filled much lower or not at all if you have a stop limit.
  8. But wouldnt my limit order act as a "level" that has to be broken before it goes down another tick lower ? Kinda act like a NBBO ?
  9. A subject whose name is "cascading" covers what you are thinking about.

    If a person uses stops it is incumbent on his to go through the dozen or so strategies for stops. When this is completed, it is usually found that stops are not part of excellent level trading strategies.

    When expert type trasding comes into view, it is usually found that some of the most profitable days are cascading days.

    A lot of what is the matter of fact in trading is counterintuitive as measured by the CW type standards which is your current lot.
  10. no a limit only means dont fill lower than my limit. if prices blows through your limit you do not get filled.
    #10     Apr 26, 2010