ES Limit Orders

[saico]

Hi there,

as you know the ES moves often very fast and volatile. Therefore how much points above or below of the current price would you recommend for a TWS Limit Order and a fast and save entry or exit?

Much thanks
Mario
Germany

 

[H2O]

I use a difference of 10 points between the stop and the limit price.

Hope this helps

 

[Jayford]

Just click on the bid if selling, and the offer(ask) if buying.

The exception to this is if you are already in a position and NEED to get out if its moving quick. Then just fire off a market order.

I am assuming you just need to get in or out, and are not asking about risk levels etc cause that all depends on your system.

Jay

 

[saico]

Actually i meant, how much points for TWS Limit Order adjustment do you use to prevent to miss a trade because of the slippage.

Mario

 

[Magna]

It's very rare that you would ever need more than .50 point (2 ticks), but if that makes you nervous then use 1.0 pt or even 2.0 pts.

 

[Jayford]

Quote from saico:

Actually i meant, how much points for TWS Limit Order adjustment do you use to prevent to miss a trade because of the slippage.

Mario

I don't use any for entry. I just lose the spread. I almost always get filled, but then again I never chase a market, so if its rising real fast, I wont be putting in buy orders, etc. For exits, I usually use stops, but may place a market order if I really want to be sure to exit before the stop is hit.

I agree with the post about .50, but if you are going to do that, then you might as well just use market orders.

 

[profitseer]

this is crazy. If you want a limit to serve as a market, why use .50? I have had a stop get filled .75 past the stop price in a fast market.

I guess using a limit saves tws from having to go to all the trouble of converting a market order to an aggressive limit, but you can just as easily do it yourself. How bout "Buy Ask plus 4"

I mean I'm all for frugality in things where frugality pays in the long run, but I fail to see how cutting your limit as close as possible serves the good of the world in any way. And it could in fact hurt your broker if it costs them a missed trade and you are inadvertently forced unwillingly to become a long term trader.

 

[FX-Trader]

Anyway ...

"Market orders" are transformed into limit orders
and then sent to the exchange as limit orders.

The exchange does not accept "market orders".

 

[Jayford]

Quote from FX-Trader:

Anyways ...

"Market orders" are transformed into limit orders
and then sent to the exchange as limit orders.

The exchange does not accept "market orders".

I never knew this. How does it work when a market order gets you out of a rapidly moving market, but your unhit limit order is dead in the water? Does IB send limits a certain distance off the market when you enter a market order to make sure it gets filled?

Very interesting. I thought I knew the process, obviously I don't.

Jay

 

[profitseer]

Quote from Jayford:



I never knew this. How does it work when a market order gets you out of a rapidly moving market, but your unhit limit order is dead in the water? Does IB send limits a certain distance off the market when you enter a market order to make sure it gets filled?

Very interesting. I thought I knew the process, obviously I don't.

Jay

right, 4 handles away from the market, so, I suppose in a seriously moving market, you could theoretically not get filled with a market order, but in that kind of a market, surly you would be on the right side laughing it up and riding it out.