NexusFi: Find Your Edge


Home Menu

 





OCOTrader orders will be in market if client down


Discussion in Platforms and Indicators

Updated
    1. trending_up 3,233 views
    2. thumb_up 0 thanks given
    3. group 3 followers
    1. forum 3 posts
    2. attach_file 0 attachments




 
Search this Thread

OCOTrader orders will be in market if client down

  #1 (permalink)
soonhwei
Singapore
 
Posts: 13 since Jun 2010
Thanks Given: 0
Thanks Received: 0

Hi,

i understand that synthetic order will be handled at TT gateway rather than in the market.

but if am using OCOtrader to place OCO orders with limit and stop market which i think both orders type are exchange native, they are both in the market? The OCO function will be lost?

Thanks.

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Deepmoney LLM
Elite Quantitative GenAI/LLM
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
38 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
  #2 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102


soonhwei View Post
Hi,

i understand that synthetic order will be handled at TT gateway rather than in the market.

but if am using OCOtrader to place OCO orders with limit and stop market which i think both orders type are exchange native, they are both in the market? The OCO function will be lost?

Thanks.

Eurex has native OCO orders. CME and ICE don't. ICE does not allow for stop market orders either. Most brokers will do the conversion into a stop limit order. It really all depends on the exchange and how your broker system is handling it.

Typically the OCO functionality is not at the exchange, the exchange only knows the limit and stop market order. If your client is down, the OCO functionality is not working, and both orders the stop order (stop loss) and the limit order (profit target) may be executed, leaving you with a naked position.

You have to find out which piece of software manages the OCO relationship to know what to do, if your client is down.

Reply With Quote
  #3 (permalink)
traderlinda
New York/NY
 
Posts: 5 since May 2012
Thanks Given: 1
Thanks Received: 0


Sounds better than the way NT handles OCO orders.

Reply With Quote
  #4 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102


traderlinda View Post
Sounds better than the way NT handles OCO orders.

I have never used OCO Trader, but I think it is similar. Here is a response from the TradingTechnologies Forum (the post dates back to 2006, so I cannot tell whether is is still up-to-date):

"If the exchange does not support stops but TT does, the synthetic stops are held at the TT Gateway. If the client goes down the stop order will no longer be managed by OCO Trader and the stop order will never reach the market. The limit order, once placed in the market by OCO Trader, will remain in the market as a straight limit order. Any reactionary functionality provided by OCO Trader will be lost.

There are some TT gateways on which neither the exchange nor TT currently supports stops including ICE, NYMEX and Montreal. A trader wanting to create stops on a gateway that does not support native or synthetic stops can use the virtual stop feature on OCO Trader, Navigator, Equalizer, or PS Trader to create these stops, but these will be held on the client. If the client crashes, the virtual stop is deleted."


This is pretty much the same as for NinjaTrader, with a few differences. In particular the stop order is handled in a different way:


OCO management is simulated locally by OCOTrader and NinjaTrader

-> limit order goes to exchange
-> OCOTrader: stop always goes to TT Gateway, where it is simulated
-> NinjaTrader: stop goes to exchange if supported by the exchange, otherwise stop goes to broker server, where it is simulated
-> OCOTrader: OCO management is done by OCO Trader, if OCOTrader client goes down, OCO orders are no more managed
-> NinjaTrader: OCO management is done by NinjaTrader for most brokers, if NinjaTrader goes down, OCO orders are no more managed

However there seems to be a difference:

If OCOTrader goes down, you have no stop loss, but a single profit order which covers your position if hit. At least this is what I conclude from the message cited above. If NinjaTrader goes down, you are left with stop order and a limit order, both exchange or broker held. The advantage is that you do have a stop, the inconvenience is that both orders persists and you may find yourself with a reversed position if both orders are hit.


If you use NinjaTrader with Interactive Brokers or TD Ameritrade, OCO orders are broker held

NinjaTrader has an advantage, if you trade through Interactive Brokers or TD Ameritrade. Both brokers support OCO orders on their servers. Only for these NinjaTrader passes the OCO management to the broker servers, where the full OCO management is handled. Even if NinjaTrader goes down, the OCO orders should still be correctly executed.

Where do your orders reside? - [AUTOLINK]NinjaTrader[/AUTOLINK] Support Forum

This is what I have understood, if somebody knows better please correct me.

Reply With Quote




Last Updated on May 22, 2012


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts