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I can see two benefits of using server side vs client for order management;
1.In the case of placing an order then losing client internet connection the stop and limit are still placed when the parent order is filled (whilst the client still being disconnected) because the child orders are held with the trading service, waiting for confirmation the parent has been filled.
2.Reduced latency. Because the child stop and target orders are held with the trading service on their server (which is assumed to be collocated with the exchange), once the parent fills there is minimal latency for the placement of the stop (for somewhat increased protection) and target limit (better position in queue).
Are there any other benefits I am missing here that anyone knows and can share?
Many thanks.
Can you help answer these questions from other members on NexusFi?
I think points 1 and 2 are the big ones. The OCO (One Cancels the Other) server side handling is nice as well. When you profit target filled, the stop loss order cancels automatically or vice versa. It is always ideal to have this handled server side because if you lose internet connection you end up with an open orphan order.
I would be curious to see if anyone can think of any advantage to client side over server side.... About the only thing I would be able to see is maybe hiding your size (assuming you had size that needed to be hidden). I don't know any obvious advantages to this, but some people may want to do things without the rest of the market seeing it. But outside of this, I don't really see any other obvious advantages client side order handling has.
Good Topic!
Ian
In the analytical world there is no such thing as art, there is only the science you know and the science you don't know. Characterizing the science you don't know as "art" is a fools game.
The only advantage that comes to mind is the ability to use exotic/custom type stop orders. SC (and I believe Jigsaw) have volume based/triggered stops that are popular with some folks. AFAIK, these have to be client based.
I think the idea is cool and probably very useful for those 'to the tick' situations, but I don't like the thought of additional slippage due to the latency once the client places the order.
