stop limits vs. synthetic stop limit for ES and ER

Discussion in 'Index Futures' started by baltimore, Nov 30, 2005.

  1. baltimore


    Any imput on which stop limits you like to use? ( for ER and ES) Synthetic stop limits ( stops only on your computer) or stop limit that go to the floor. What are the advantages of real vs. synthetic.
  2. milstar


    Dear Sir

    ...Suspect ,that true professional operated only with hand
    made stop,with full monitoring .
    Limit yes,as exist chanse by market order catch some
    against operator .

    Relevant opinion would appreciated .
  3. I would say that it depend on the software platform, some software engines has trouble dealing with large number of synthetic stops, so when the stop price is reached, the slight delay in the trigger would mean that the actual order won't reach Globex in time (since we are talking about ES and ER here). For instance, certain software (which won't be named) has a built-in 30 order queue, so if your order happen to be 31st in the order server, your order will hit Globex just a fraction of second slower than the first 30.

    But if your orders are not that time sensitive, it doesn't really make a difference I guess.
  4. AaronCapps

    AaronCapps Global Futures

    this is my opinion, but real stops held at the exchange are the best way to operate. For two reasons, synthetic stops rely on your price feed to know when to execute, if your connection goes down, or is intermitten, then your stop will not be executed or has a high chance for slippage. Secondly slippage, in a fast market like the ER, the split seconds it takes for your order to go from your computer to the floor could result in a tick of slippage here and there.

    In over 3 years of executing trades, i have only had slippage on real stops twice that i can remember in the ES. If it ain't broke, don't fix it.