As someone earlier posted: "What Happens to Stop Orders in a CME Velocity Event? If the Stop Order Triggers Before the Event: Once triggered, a stop order becomes a market order (or a limit order if it's a stop-limit). Since market orders are canceled during a velocity event, a triggered stop-market order would be removed from the order book. This means it does not remain pending during the event. Instead, the trader must manually re-enter the order after trading resumes, unless an automated system replaces it. If the Stop Order Has Not Yet Triggered Before the Event: The stop order remains active but untriggered. Once the market resumes, if price moves to the stop level, the order will then trigger and execute at the best available price. If liquidity is poor post-event, the execution price could be much worse than expected, leading to slippage." In my opinion number 1 is more likely, his order got cancelled, but because he also had a max loss limit on his account the platform probably send a new order to close the trade. Anyway, slippage in a situation like this is unavoidable, even if the order wasn't cancelled due to the velocity event his exit probably wouldn't have been at a better price.
https://www.cmegroup.com/education/demos-and-tutorials/understanding-velocity-logic.html Notice the date, Sept 28, 2015
I need little help about stop-loss order and Velocity logic at CME Globex. If I send stop-loss order (not as part of OCO or Bracket orders) to Globex before start Velocity logic pause and this order is accepted by Globex, this stop-loss order will be filled although it started Velocity logic pause ? Thanks !
"What Happens to Stop Orders in a CME Velocity Event? If the Stop Order Triggers Before the Event: Once triggered, a stop order becomes a market order (or a limit order if it's a stop-limit). Since market orders are canceled during a velocity event, a triggered stop-market order would be removed from the order book. This means it does not remain pending during the event. Instead, the trader must manually re-enter the order after trading resumes, unless an automated system replaces it. If the Stop Order Has Not Yet Triggered Before the Event: The stop order remains active but untriggered. Once the market resumes, if price moves to the stop level, the order will then trigger and execute at the best available price. If liquidity is poor post-event, the execution price could be much worse than expected, leading to slippage."
Thank you for your help. if I understand correctly stop-limit order will still work besides that is Velocity logic pause ?
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Not guaranteed. The stop will activate the limit order. But if price gaps or flies past through it without revisiting it... It won't.