How is my stop triggered? | Traders Hideout


futures.io - futures trading strategies, market news, trading charts and platforms


Traders Hideout


Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons




 

How is my stop triggered?

  #3 (permalink)

Super Moderator
London UK
 
Trading Experience: Beginner
Platform: CQG
Broker/Data: S5
Favorite Futures: Futures
 
xplorer's Avatar
 
Posts: 4,820 since Sep 2015
Thanks: 11,876 given, 10,522 received



Grantx View Post
I am asking this because I am still on demo and I am not sure how my stop gets stored or triggered server side on a live account.

Instrument: ES
Price is currently offered at 74.00 and I buy.
Stop is 2 ticks away at 73.50.

Price ticks down to 73.75 bid.
Buyers break the bid and 73.75 goes offer.

Price ticks down to 73.50 bid.
On the demo, my position will be closed immediately as 73.50 goes bid.
On a live account though, what happens? I am in a long position so therefore am a seller. How is a stop executed?

Grantx

Same thing happens on a live account.

If you are using a straight stop, as soon as just 1 contract is traded at the price where your stop is, the stop gets triggered and you're out.

If you're using the so called 'DOM-triggered' stops, then you can set the stop to be triggered only when the limit orders at that level go below a certain threshold.

It's palatable because you are not necessarily thrown out of the trade as soon as 1 contract trades there, but the flipside is, depending on the threshold level you set, if a big order comes and sweeps that level out you will suffer slippage.

Reply With Quote
The following user says Thank You to xplorer for this post: