Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Instant fills on SL but relatively longer wait for limit orders?
Had a genuine question as to how most brokers operate in regards to limit orders and stop losses. I've noticed that literally every time I place a limit order, it takes a lot of time to fill even though I queued earlier than the contracts I see. I will get filled when that level clears all contracts including mine, bumping price up to the next level. However, I noticed that when I have my stop losses in, then my order gets filled INSTANTLY. Even if I am 400th contract on the DOM, I get filled as soon as the price immediately hits offer I get stopped. So, can anyone explain why this is the case? Are brokers responsible for these executions? Or do all brokers operate this way? Is this a default thing? Preference? Really curious.
Can you help answer these questions from other members on NexusFi?
Most stop orders are market orders that gets filled the moment market touches that price even once.
Not sure about the limit order issue, I think it could just be that you are in the middle of the que but the orders that came in after you are mostly fake orders or purposely cancelled once that price starts trading, hence giving the appearance by the time your order gets filled, the price has traded through.
I don't think you can have a que of stop orders in line like the limit orders because 1) you can't really see other people's stop-orders (unless you are the broker who is providing a server to the stop order placed)
2) even stop-limit orders are essentially market orders if the price ticks just 1 below/above it.
I have seen ways to code the stop order so that it responds to what's happening such as certain number of contracts trades before stop order gets filled or the current book on bid/ask increases/decreases by whatever number, ratio, etc. before acting and combination of these things and so on. Otherwise nothing I'm aware of.
@Opstar yeah i tried limit stop order and got executed exactly like regular stop order. My thinking probably the same logic as getting in limit order so i wonder what that order for if it's pretty much the copy of other order just different name??? Lol. I haven't really experimenting with other stop orders.
If I understand correctly, you're not using the code (don't have it)? It can be considered an edge you know. How many times you see the price hit your stop and went back without going a tick past your stop?
The only way i can think of is by eyeing the dom and hit market order before the # of contracts is depleted, but of course automating that would be better because can't be fast enough by clicking
Stop-limit order does minimize slippage, albeit at the cost of risking not getting filled and price keep moving past you.
The coding i mentioned or rather algorithms being employed are in use already. There are softwares for these things, e.g. I think bookmap currently has the capability for you to set it up. I personally don't find an edge in these things because I'm not using these types of order flow analytics for my method.
This works as designed and has nothing to do with brokers.
A limit order gives you a guaranteed price at which you enter the market. But you are in a queue so you have to wait until all the orders that were placed before yours are filled. Also you may not get filled if the market goes back. So limit orders=guaranteed price, not guaranteed fill.
A stop order is like a market order, in that when the level where your stop rests is touched, the stop becomes a market order.
Market orders by definition give you a guaranteed entry (fill) into the market, but you don't get a guaranteed price.
so i wonder what that order for if it's pretty much the copy of other order just different name??? Lol. I haven't really experimenting with other 