Does anyone know offhand if stop orders fire when the price is equal, or less than? Example: I bought AAPL at $300.00, and have a stop loss set at $290.00. Will the stop fire at $290.00, or $289.99? Thanks, Keith
Stop becomes market order when TRADE @ price occurs. This is not the same as equal or less than price. Stop-limit becomes limit order when trade @ price occurs, which may trade through with no fill at the limit. MIT orders (if accepted) fire based on price only.
%% Most likely; $290 bid .And since its $300-290= round number, not likely you will have slippage from that. I'm not expecting any overnite gaps down now thru that #................................................[I checked the chart, but not a prediction.Good close today]
As per IB's TWS user guide, "A Stop order becomes a market order to buy or sell securities or commodities once the specified stop price is attained or penetrated. A Stop order is not guaranteed a specific execution price." Hope this helps. If you wish your Stop order not to executed as Market order, use their Stop-Limit order type. "A Stop Limit order is similar to a stop order in that a stop price will activate the order. However, unlike the stop order, which is submitted as a market order when elected, the stop limit order is submitted as a limit order. Use the Lmt Price and Aux. Price fields on the trading screen to enter orders requiring multiple prices or values." Hope this helps to implement your stop loss order type within IB's TWS.
your stop order in some sense relies on the skill of the pratictioner because you can't put a less than or equal to firing squad sitting idle in the order book because of locked markets. so i dunno really.
for good reason by the way locked market MUST be maintained we are NOT having people putting in hidden orders that appear after the level is breached because this gives preferential treatment to some very shady outfits of substandard algorithmic ability