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How is my stop triggered?

  #4 (permalink)

Reading UK
Trading Experience: None
Platform: Custom
Broker/Data: Interactive Brokers
Favorite Futures: My 3 boys
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Posts: 1,631 since Oct 2016
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xplorer View Post
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.

Thanks. How is the stop stored on the server? Lets say I was a big player with a 300 lot stop, can others see where that stop is? It sounds like a market order gets you out of the position?

xplorer View Post
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.

If I were to implement this, how do I do it?

xplorer View Post
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.

Good advice. Bad idea to try this on a thin market. Safer (although still no guarantee but slightly better chances of a fill) on thicker markets like treasuries.

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