AON for stop market orders?

HungryMind1200

HungryMind1200

Most of my stop orders are filled in single lots... If I stop out of, say 700 shares, there's a good chance that I will be filled seven times. For that trade, I would pay 7x broker commission costs for 1 stop market order. I can see the best bid's size decrease on the L2 as my order is printed on the tape. Why wasn't I filled only once?


An AON order should resolve this, but seems like it could be dangerous.


My platform doesn't have smartroute, so I must pre-set my order ECN venues. Today I'm sending my stop market orders to EDGX. Most of what I trade (equities) are listed on NYSEARCA, should I send the stop orders to the NYSE or ARCA to get the best fill execution?


The stocks I trade are very liquid and I'm not trading gigantic size. I don't care about ECN costs for taking small liquidity. I'd rather pay the ECN for the small position versus broker commission costs on every fill. Is AON my answer? If so, is it worth the risk? Should I route somewhere else? Should I speak with my broker about this?


HELP! - and thank you.
 
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Stop orders for stock trades are held by the platform or broker, not the exchange. Because of Reg NMS, there are no trade thoughts. That means your order, if allowed by the platform/broker, would remain active until the bid is equal to or larger than your sell order at that price. This is a really bad idea if because of a stop trigger, you want an execution quickly. It's possible to not get an execution.

BTW: The stop order is one order. Why would you get charged more for 7 100 lots than one 700 lot? If you pay by the ticket, it's one ticket. If you pay by the share, the commission would be the same.
 
Thanks for the reply Robert. Most of what I trade will usually have a very large bid offer size (when closing a long position, for example). I'm not trading large size, so I would guess that I could be filled witin the first and best offer's size. Sure this won't happen 100% (and of course the buyers could disappear/lower the offer, volatility could spike, etc), but it's very common with what I trade.

My concern is why are my stop market orders getting chopped up and executed in single-lot fills? If there's one MM with the best offer (again, we'll use closing a long position as an example), and his offer size is more then my order, shouldn't I hit the bid and get filled once?

You are correct, my stop orders are held on the platform. Am I wrong in thinking that better order routing would lead to larger and less fills? Maybe avoid stop orders altogether? Use mental stops and limit orders, or stoplimits?
 
You would have to ask your broker that question about chopping up the orders. I've never seen that. They might not have an answer for you. What broker do you use and what platform? I assume you have full DMA based on the description.
 
HungryMind1200 said:
Yes, that's correct. I am using a licensed prop firm and Takion.
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Hi,
i would like to talk a few things about takion software layout. I am also using takion. Can you please email me on my id ? satiesh2016@gmail.com. Please send me your takion software with settings. These days i am facing issues with orders due to spoofing restrictions on my software. I believe these restrictions are only for Asian countries.
 
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