Stops on ICE Coffee

Discussion in 'Order Execution' started by Ridu, Jun 25, 2008.

  1. Ridu


    Been getting a number of bad fills on my stops in coffee on the ICE.... Can anyone confirm - if I use a stop limit order via Pats JTrader is this order 'visible' to the rest of the market (ie can they see the price and the number of lots I'm looking to get out of)? Obviously widening the stops would help, but interested to know the mechanics behind the stop limit on ICE if anyone can confirm.
    Many thanks
  2. i might be wrong but I trade coffee quite a bit and what I've noticed is that there is little enough volume for big stop running to tweak your prices by gapping up over and just behaving weird. I have wondered the same thing though man
  3. Ridu


    Interesting you're experiencing the same problem. There's been a couple of times (both during light holiday trading) where I noticed the price has spiked down sharply taking out all the stops, shortly therafter returning to where it started, creating what I think are sometimes referred to as spider legs?! I'll dig out the chart and post it here when I've a chance to run through it.
    So can anyone confirm... Are orders that are placed 'stop limit' on ICE actually visible on the floor before they hit the execution price? If they are not, then it seems to be that traders are running prices through the most obvious places (just below most recent lows, or just above the most recent highs) with the lack of liquidity contributing to the bad fill; but if these orders are actually 'visible' ie the price and number of lots you want to trade can be seen by others prior to the order being filled, then I'll make sure as hell not to use them! Thanks in advance if anyone has any info.
  4. Hey while i have no direct experince on the ICe ex I have been trading on/off floor and across almost every exchange for over 15yrs and I would be very doubtful that they have your stops on show it would simply cripple the credibilty of an exchange.

    More likely you are getting hit by professional traders who stop run the likely places. It doesnt take much money usually to find out where they are and you can have a few unproductive prods before hitting and still make good money. Thin markets are always vulnerable and its not just the little guy that gets hit institutions often place hard stops in these smaller markets as well so dont just think its little old you.
  5. bt116


    I was under the impression there was no more coffee floor trading. Am I wrong?
  6. The floor in terms of the marketplace where the future trades be it physical or electronic shouldnt make a big diff in terms of what he is trying to say which is can the orders be seen by other market partcipants.
  7. gotta be illiquid