Using Stop or StopLimit for your stop loss orders in CME

Discussion in 'Order Execution' started by topdog, Jan 12, 2021.

  1. topdog

    topdog

    The question was about StopLimit (wide band) and Stop orders used for stop loss.

    -> My mistake in the latest message (edited)
     
    Last edited: Jan 13, 2021
    #11     Jan 13, 2021
  2. topdog

    topdog

    Currently I think it is the very same FIFO queue where the StopLimit and Stop orders are sitting. When the stop price is traded then this queue is checked in the first in first out basis .
     
    #12     Jan 13, 2021
  3. topdog

    topdog

    CME GCC replied and there is no difference. Timestamps are the key in here ie. FIFO in the whole system. I just have to remember that if I update quantity, price, or customer id the order will be updated by a new timestamp ie. rescheduled.
     
    #13     Jan 14, 2021
  4. Bad_Badness

    Bad_Badness

    Also remember to take into account how the order is held at the broker. Some "stops" are simulated by holding them at the broker, then sent to the exchange. It is instrument-exchange specific. BTW: IB says it is 250ms to get from their servers to the exchange. Generic, I know but, still about an additional amount of time of about a mouse click.
     
    #14     Jan 16, 2021
  5. topdog

    topdog

    This is correct. Just check what order types the exchange natively supports and you're just fine. But of course it's up to your strategy what types you need and can you use exchange supported.

    IB's platform is very slow. I like TT.
     
    #15     Jan 16, 2021
  6. ondafringe

    ondafringe

    Keep in mind, if you trade CME or ICE products, those exchanges *automatically* add a Stop-Limit X-points out from your regular Stop, whether you like it or not.

    https://www.cmegroup.com/education/protection-functionality-for-market-and-stop-orders.html
     
    Last edited: Jan 16, 2021
    #16     Jan 16, 2021
  7. Overnight

    Overnight

    #17     Jan 16, 2021
  8. topdog

    topdog

    Yes. That functionality is optional.
     
    #18     Jan 16, 2021
  9. ondafringe

    ondafringe

    The so-called "protective stop-limit" is added to regular Stops automatically.
     
    #19     Jan 17, 2021
  10. topdog

    topdog

    It depends on the order type. There is two types of stops, and only one used the protection value. So it's optional.
     
    #20     Jan 18, 2021