It depends of their (CME) order entry protection parameters. Most of the US exchanges have such controls in their trading engine.
Are you asking to get screwed with a limit order above the mkt?
- Thread starter Gregk
- Start date
Correct, this is an invalid order. We submit a STOP LIMIT order with the STOP price being above the mkt. When the stop is hit, it is immediately replaced with a LIMIT order which should now presumably be at the market.
I think you are smart enough to use the limit price slightly above the market price. This might work well for you.
That is a smart move used by professional traders.
When the market is moving very rapidly, you want to make sure
you have some positions.
Let's say the market is going up.
So you simply click say BUY AT MARKET,
or BUY at HIGHER PRICE.
Foolish traders would say
" let the price comes to you ".
When the market is moving very rapidly, you want to make sure
you have some positions.
Let's say the market is going up.
So you simply click say BUY AT MARKET,
or BUY at HIGHER PRICE.
Foolish traders would say
" let the price comes to you ".
So every market maker is a “foolish trader”?
Yes, you can try to use the limit price above the current one a bit. Might work.
Have you guys ever tried to enter a position above the current ask? Got to know that some traders are already doing it. But I think that it is considered an invalid order.
Often. LMT just says, this price or better. What you see in a retail broker and a consumer internet connection is delayed. Timeline example in ms:
T-0: A trade at Price X occurs at exchange.
T+250: The broker process it.
T+400: It gets to your machine
T+800: You react and put in your order MKT
T+1200: your order is accepted at broker
T+1450: order is live at exchange. (IB claims 250ms transmit time)
T+1700: Order executes after all the other MKT order before you execute.
These are just examples times, but you get the idea. For a LMT order, the MKT orders go first, then all the other LMT orders before you.
That is why RobinH is a thing, they sell your order flow and all sorts of stuff can happen in 250 ms. Meanwhile people think it is like retail purchasing at an Apple store and watch animated graphics for entertainment. But in the background....
Your trading plan has to take this into account.
T-0: A trade at Price X occurs at exchange.
T+250: The broker process it.
T+400: It gets to your machine
T+800: You react and put in your order MKT
T+1200: your order is accepted at broker
T+1450: order is live at exchange. (IB claims 250ms transmit time)
T+1700: Order executes after all the other MKT order before you execute.
These are just examples times, but you get the idea. For a LMT order, the MKT orders go first, then all the other LMT orders before you.
That is why RobinH is a thing, they sell your order flow and all sorts of stuff can happen in 250 ms. Meanwhile people think it is like retail purchasing at an Apple store and watch animated graphics for entertainment. But in the background....
Your trading plan has to take this into account.
When you use the stop limit order, it triggers the submission of a limit order, once the asset reaches, or breaks through, a specified stop price.