limit order entered on the book can be skipped ?

[HFT italy]

I think not , because the exchange should operate in this way limit orders placed on the order book or negotiations :
limit order price reached as exchange turns in order to best
therefore, this type of order should never be skipped


it's correct? correct me if I 'm wrong

I enclose below an image in which two limit orders are seen placed

So when the market reaches the prices of limit orders at 8.720 and 8.585
taking orders to market orders
and they should not be skipped and thus not executed right?
there may be potential causes for which is not executed at that price?

 

[ubermenschtrader]

Limit orders can be piggy backed right over. I have seen it happen. It usually occurs when the tape is going bonkers, but yes it can happen.

 

[Sig]

I think not , because the exchange should operate in this way limit orders placed on the order book or negotiations :
limit order price reached as exchange turns in order to best
therefore, this type of order should never be skipped


it's correct? correct me if I 'm wrong

I enclose below an image in which two limit orders are seen placed

So when the market reaches the prices of limit orders at 8.720 and 8.585
taking orders to market orders
and they should not be skipped and thus not executed right?
there may be potential causes for which is not executed at that price?

What exchange is this on? In general limit orders can't be skipped and in the U.S. the NBBO rule should ensure you are filled before an inferior price.

 

[ubermenschtrader]

You can cite any rule you want, trade long enough and watch it happen. Then you can sit there and ponder on your limit order. Find one of the currency traders who were blown out by the 20 cent move in the swissy overnight. Some of these traders awoke to find they owed the brokerages thousands of dollars. The prior day they had a profit. Their stops were blown right past.

 

[Sig]

You can cite any rule you want, trade long enough and watch it happen. Then you can sit there and ponder on your limit order. Find one of the currency traders who were blown out by the 20 cent move in the swissy overnight. Some of these traders awoke to find they owed the brokerages thousands of dollars. The prior day they had a profit. Their stops were blown right past.

Currency futures traders trading on exchanges or spot traders operating OTC? If you're operating OTC all bets are off (actually you're taking a bet on your counterparty!) The NBBO rules are for exchange traded products, hence my question about what exchange this was on. If you have evidence of violation of the law that impacted you personally, contact the SEC, CFTC, or FINRA as appropriate. They investigate every single case, I have personal experience with this as a customer. If you can't be bothered to file a complaint with the appropriate regulator, then you really don't have a basis to whine here.

 

[Swan Noir]

You can cite any rule you want, trade long enough and watch it happen. Then you can sit there and ponder on your limit order. Find one of the currency traders who were blown out by the 20 cent move in the swissy overnight. Some of these traders awoke to find they owed the brokerages thousands of dollars. The prior day they had a profit. Their stops were blown right past.

What you describe is not necessarily an answer. A limit order (stop) never means you will be executed at your price but on exchanges it does mean you will become a market order before any orders will be executed at an inferior price. I've seen changes in policy from the Swiss National Bank result in huge movement in what is overnight in the US.

 

[1245]

I think not , because the exchange should operate in this way limit orders placed on the order book or negotiations :
limit order price reached as exchange turns in order to best
therefore, this type of order should never be skipped


it's correct? correct me if I 'm wrong

I enclose below an image in which two limit orders are seen placed

So when the market reaches the prices of limit orders at 8.720 and 8.585
taking orders to market orders
and they should not be skipped and thus not executed right?
there may be potential causes for which is not executed at that price?

It would help to know what SGR is, what asset class this is and what exchange is this?

1245

 

[HFT italy]

I thank you for all the answers

so it should always be performed .
I ask because I'm building a program and I'm developing the risk management of positions .
The limit orders on the book I use them as a stop loss and stop profit
SGR is a small cap of Italian stock exchange

 

[1245]

SGR is a small cap of Italian stock exchange

I'm not familiar with the rules of that exchange. On the listed US exchanges, there are no trade-throughs during normal market conditions.

 

[conduit]

Your anecdote has nothing to do with the mechanics of a limit order.

Even when SNB lifted its quasi-peg to the euro limit orders worked perfectly well and anyway you probably are confusing limit and stop orders here. A limit triggers when the limit price is touched (or exceeded depending on the exact type of limit order, some limit orders trigger when bid or ask or mid prices are reached). A limit order always ensures that if you are filled that you are filled at limit price or better.

In the SNB example, traders were not filled because first of all they put in stop orders (not limit orders), and when a stop order triggers it converts into a market order (contrary to a limit order). If there is no liquidity the fill for a stop order can be far away from the original stop price.

Such is not the case with a limit order.

You can cite any rule you want, trade long enough and watch it happen. Then you can sit there and ponder on your limit order. Find one of the currency traders who were blown out by the 20 cent move in the swissy overnight. Some of these traders awoke to find they owed the brokerages thousands of dollars. The prior day they had a profit. Their stops were blown right past.