Jesus Fn Christ. He just explained how it’s not prudent to have a position on into a news release or number. Go back to Midas and upselling rubes on brake jobs.
My understanding is that in velocity logic which his broker said happened the market orders are cancelled. Again this is what NT told him: "it appears the orders were rejected by the exchange because trading had been halted due to the 'Velocity Logic' event. The term "Velocity Logic" refers to a feature implemented by some exchanges (such as the CME Group) to prevent excessive market volatility. Velocity Logic is a market volatility protection mechanism used by exchanges like CME. It temporarily halts trading if the market experiences extreme price movement within a short time. During a Velocity Logic pause, certain order types—especially market orders—may be restricted or rejected which is the issue you ran into with your market orders."
If his order was cancelled then it never would have executed, it did, just at a much lower price than expected.
Okay, that is another thing to consider. If it was canceled, how did it execute? If it wasn't canceled, why wasn't he protected?
Your statement here is what made me as for verification and if you had any links with more explanation "By the way, market orders aren't cancelled at all during extreme price movements, they execute at the best available price, which can be much lower or higher, as was the case here." What I read about velocity logic is that when it happens market orders ARE cancelled. I could be misunderstanding the issue. That is why I was asking for more info. I understood market velocity logic is an "extreme" price movement. You say market order are not cancelled in extreme moves as was his case. What am I not getting here? I tend to think his order was held by the broker and when the broker saw the writing on the wall they sent it but by then the market had dropped and was entering velocity logic. Or do you think his order was already on the CME exchange and he tried to modify when he saw price and that is what was rejected and that is what NT was referring when they told him why it appeared his order was rejected? What other order could NT be referring to above in post #85 that I posted?
You are probably correct. There was a velocity event. The OP's stop was canceled. The broker resent the stop order after the velocity event expired, near the bottom of the drop. The protection points were applied at that lower level. The OP gets nailed. That's the only thing that makes sense. Not sure how you would protect against that without some kind of hedge.