IB Market Orders--ES

[jpatet]

Quote from ddunbar:

Stop can't be a stop because the CME doesn't accept stops on the Emini ES. Only Stop Limit.

As far as confirming whether or not IB will continue to enter unfilled order at prevaling prices until filled on a simulated stop, I would suggest PM'ing IBsoft or def. According to IB's literature, it appears so.

Thanks again ddunbar, I get it now. I made too many assumptions in my transition from pit trading.

Best regards,
JP

 

[Bsulli]

Quote from jpatet:

I’m still missing something here. Why can’t a stop be a stop? What’s the problem?

The problem is called casacading and the globex system got smashed royal by it several years ago when stops triggering and dropped the market some 20 points(may of been more or less, would have to go back and look) in less than a 2 or 3 seconds. The CME had to halt the market for the rest of the day. The CME completely overhauled the entire stop queuing mechanism to prevent it going forward. A lot trades were busted that day because of it. I know I was sitting in front of the screen when it happen. I have the CME produced stop loss document that was produced as a result of it somewhere on my pc. There was a lot written about it in the press when it happen. If the CME hadn't halted the market and flushed the stop queues it could massively dropped the market. I remember the YM dropped a huge amount in seconds right along with it but stayed within the circuit breakers and then recovered the rest of the day quite nicely.

Good luck and good trading.
Bsulli

 

[jpatet]

Quote from Bsulli:

The problem is called casacading and the globex system got smashed royal by it several years ago when stops triggering and dropped the market some 20 points(may of been more or less, would have to go back and look) in less than a 2 or 3 seconds. The CME had to halt the market for the rest of the day. The CME completely overhauled the entire stop queuing mechanism to prevent it going forward. A lot trades were busted that day because of it. I know I was sitting in front of the screen when it happen. I have the CME produced stop loss document that was produced as a result of it somewhere on my pc. There was a lot written about it in the press when it happen. If the CME hadn't halted the market and flushed the stop queues it could massively dropped the market. I remember the YM dropped a huge amount in seconds right along with it but stayed within the circuit breakers and then recovered the rest of the day quite nicely.

Good luck and good trading.
Bsulli

Thanks Bsulli for that additional information.

 

[Bsulli]

Here is the doc that explains it all. There maybe later rev's I don't know but the stop logic in it is the current logic in use. I can't speak for the CME. Dang I forgot just how long ago it happened. See attached doc. Also the No Bust Range came into play during the event. As a result just this week the CME amended the No Bust Range to allow for it to be doubled during future market events without notification. So heads up!.





http://www.cftc.gov/files/submissions/rules/selfcertifications/2006/rul052606cme002.pdf

Bsulli