Globex Stop Orders

NexusFi · 2012-02-03T14:30:16-05:00

I use stop market orders but I realized that I am a little unsure about the exact order execution and I'm wondering whether anyone has any experience or opinion that can help. My understanding is that since Globex doesn't support a stop market order type, the stop is held on the brokers server. It seems like this would cause additional slippage as compared with a stop with protection order that resides directly on Globex. It also seems that it would be a little more reliable to have the stop on …

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Updated February 3, 2012

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Globex Stop Orders

February 3rd, 2012, 02:30 PM	#1 (permalink)
Jolew San Jose, CA Elite Member Experience: Intermediate Platform: Sierra Chart Broker: IB Trading: Futures Posts: 113 since Jan 2011 Thanks Given: 54 Thanks Received: 97	I use stop market orders but I realized that I am a little unsure about the exact order execution and I'm wondering whether anyone has any experience or opinion that can help. My understanding is that since Globex doesn't support a stop market order type, the stop is held on the brokers server. It seems like this would cause additional slippage as compared with a stop with protection order that resides directly on Globex. It also seems that it would be a little more reliable to have the stop on Globex. Anybody have any ideas on advantages and disadvantages of the stop being held by broker or Globex directly? I'm asking this non-specific to a broker or platform, but I notice that IB recently added the stop with protection order type. I don't as yet have that type on my platform (Sierra), though I suppose I can use a stop limit order since that is effectively what a stop with protection order is, but it makes sense to me to have CME manage the limit order offset. Any feedback?