Stop's and money - Traders Hideout | futures io social day trading
futures io futures trading

Stop's and money
Updated: Views / Replies:4,799 / 12
Created: by LittleJohn Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Stop's and money

  #11 (permalink)
PTA, Gauteng
Futures Experience: Advanced
Platform: Self built + Sierra + TWS
Favorite Futures: Stocks and Options
DarkPoolTrading's Avatar
Posts: 1,036 since May 2012
Thanks: 1,244 given, 1,300 received

LittleJohn View Post
PS just sorted it in my head, the money can only go to brokers.

No, most certainly not.

Orders are filled at the next best price where buyers or sellers are present. On a stop run to the upside, it will carry on running upwards till sellers are found. On a stop run to the downside, it will carry on running till buyers are found. There's really nothing more to it than that.

Diversification is the only free lunch
Reply With Quote
The following user says Thank You to DarkPoolTrading for this post:
  #12 (permalink)
Membership Temporarily Revoked
Calgary Alberta/Canada
Futures Experience: Advanced
Platform: TDWaterhouse
Favorite Futures: stocks (long term)
Posts: 934 since Feb 2014
Thanks: 180 given, 777 received

This may seem a silly question but I cannot figure out to whom stop loss money actually goes to. For example at index value 17000, 1000 thousand S/L orders are resting. Also at 17000 we have 500 resting sell orders.
17000 is hit so 1000 s/l orders are triggered and 500 resting orders are triggered. To my way of thinking some of the money may go to the profit takers. But what if there is a surplus, what happens to the surplus.

Thanks LittleJohn

I think the difficulty you are having is that you think that every order is filled at the stop-loss level.

Using your example the 1000 S/L orders become 1000 Market sell orders when the s/l price is reached... this means these orders will be sold at the best price that is available.

the other resting 500 orders may be a mixture of Market sell orders (the same as the activated S/L orders) or Limit sell orders which specify what price the seller wants for his units.

These 500 resting orders are in a queue ahead of the activated S/L market orders so if there are enough buyers the 500 resting orders are sold in the order in which they were entered (whether they are Limit or Market type) and then the activated S/L orders start to sell... But if the price falls without satisfying the resting orders... the limit orders to sell are simply not sold unless the price rises again.

the rest are market orders that are sold in order that they were entered and availability buyers at that price level.... not enough buyers? the price keeps falling until buyers outnumber sellers at a given level. (note: other sell orders may come into play as the price falls but their priority falls to the end of the queue.

The only money the brokers get from the traders is the commissions from the sales/purchases of the units (both orders pay commissions) otherwise it is simply a transfer of money from buyer to seller.

Reply With Quote
The following user says Thank You to Underexposed for this post:
  #13 (permalink)
Normal Wizard
Sydney, NSW, Australia
Futures Experience: Intermediate
Platform: NinjaTrader with Jigsaw DOM
Favorite Futures: CL, 6E, ES, Piano
TickedOff's Avatar
Posts: 191 since Nov 2014
Thanks: 163 given, 196 received

Some of the time they will be a big guy gaming the market doing a "flip" where he buys the market above a level where
stops are likely to be like an obvious high, and then he absorbs the stops above that high, and sells it back down so all the breakout guys puke out their longs and sell, and then the trader will buy back his short for a profit. Usually this will be when the market is rangebound, as if you are doing a flip you dont want to get run over by a trending market. This is stuff I heard from the no bs trading course by John Grady. I personally find that significant stop hunts are good reversal signs of daily momentum and show institutional guys with large orders to fill, and these occur strong s/r levels, I characterize them by a sudden influx of orders driving the market into and they beyond the level, and then have the bids/offers immediately refresh, its really like a spike up or down into the level. The key is that the volumes should be very high, highest of the day or close to that (either on a 1 min, 3 min or 5 minute chart as it happens in a short amount of time). IF you use delta there should be a significant wick on the relevant price candle, it doesnt have to be a hammer, but have a strong down or up candle on the delta and that shows a large amount of market orders getting absorbed. In reality stops are placed everywhere, and not every cluster of stops getting hit is a stop hunt, they can also lead to violent moves up or down.

Understanding yourself is just as important as understanding markets.
Reply With Quote


futures io > > > Stop's and money

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Wyckoff Hunting for Great Risk/Reward Ratio w/Gary Fullett

Elite only

Digging into the Details of iSystems w/Stage 5 & iSystems

Jun 5

Similar Threads
Thread Thread Starter Forum Replies Last Post
How can your stop be protected in proper money management steps. bmw421 Traders Hideout 6 December 30th, 2014 02:20 AM
mouse click for Buy Stop and Sell stop On NT7 lexxmd NinjaTrader 8 May 15th, 2014 08:46 AM
Ninjatrader strategy for Trailing Stop and stop loss. skann NinjaTrader 2 August 20th, 2013 07:34 PM
Once You're in the money. Stop wise mcteague Psychology and Money Management 4 January 6th, 2013 10:24 AM
The Ascent of Money - The Origins of Our Feast or Famine Money System Victory Trader Off-Topic 2 October 8th, 2012 03:34 AM

All times are GMT -4. The time now is 11:57 AM.

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-05-22 in 0.10 seconds with 25 queries on phoenix via your IP