Limit stop loss

Turveyd said:
Never seen / heard of Futures having after hours rules or requiring a Limit order to get in out, 99% sure that's just US Stock rules.
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You are right. Typically, S/L orders work do not require limits on Futures. However, I would just make a small reminder that you need to place GTC (Good-Till-Canceled) in case you are not a day trader. If your orders do not have a GTC, they get canceled at the end of the day session.
 
I remember, price opening well under my SL's and pulling the SL before US proper open to stop instant closer in the hope of a better exit price just after open or a rebound.

I rarely held over night, then PDT stopped me trading :(
 
SkyHigh said:
Hello all

Hope you are doing well!!


I have had two incidents in the recent weeks where my stop loss didn't work upon the price reaching it.

At first time my stop loss got triggered in the after hours, and I realised that my SL was not ticked to work outside normal market hours...

So I fixed, but learnt that the only way to get my market stop loss to work outside of normal trading hours, I have to make it a limit stop loss.

So I did that... the platform gave me a choice of choosing limit stop and normal stop for the same order. And I chose both at the same price. Lets say 3.42$

But it reached this price and nothing happened and the price went under this price (outside market hours)

What am I doing wrong? Should there be a bit of a buffer between limit stop and stop loss?

How do you deal with stop losses outside market hours?
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yes a buffer will increase the chance of execution but not gurantee it.
Please read more about Stoploss limit order to understand how it works.
 
I’d be very careful about leaving stop losses open in after hours. Strange things happen.

I’d be more inclined to set some sort of alert, see if theirs any news today justify any huge gaps, then create an order.
 
Metamega said:
I’d be very careful about leaving stop losses open in after hours. Strange things happen.

I’d be more inclined to set some sort of alert, see if theirs any news today justify any huge gaps, then create an order.
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Put the limit at 1cent and someone will take that :)

I've seen stupid orders after hours, $10 stock 1000shares going for $1,first to spot buys and sells at open for easiest 9k profit ever and loss for the idiot.
 
SkyHigh said:
And I chose both at the same price. Lets say 3.42$
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They should not be at the same price.
For example if stock price quickly drops below $3.42 then you cannot sell it at $3.42. You can try to sell it (set the limit) at $3.30 and may get a better price, but if it has low volume then there may not be buyers even at that price. So basically the lower the better, while you may never be guaranteed to have your stops filled.

Or you can simulate market order by setting the limit to $0.01 - you then should always get a fill, but may regret getting stopped at the market price after hours...
(though $0.01 is just an example because exchanges may reject orders outside reasonable limits)
 
Thank you all for your input.

I failed to include some important information in my original post, so here goes...

I mainly trade Stocks in the US market.

I use InteractiveBrokers TWS platform on the mosaic interface.

STP_LMT.png


This is how I set my stop loss, as when speaking to customer service at IB they told me that certain stocks can have stop loss triggered in after hours only with stp Lmt( I wish I saved the conversation )

2.png


I have this ticked for in settings as default.


Funny thing is that each time I have my stop totally ignored and the price moves beyond my stop I close the position manually by simply dragging the my take profit Limit order line under the current price and it has no problem triggering it and getting me out instantly. So, limit take profit works fine it seems.

p.s.

Ill try to read trough the rest of the replies with more care during the day
 
In this case you may want to not put the LMT and STP both at the same price (1.22 USD in your picture). In the picture shown the STP triggers at 1.22 USD, however your order will only be filled at a price of 1.22 or higher. So if the price continued to drop to e.g. 1.21 USD your stop order will not be executed because it is below the LMT limit you have set. It would be better to have the LMT a bit lower than the STP price. For example: STP triggers at 1.22 USD and the limit price is at 1.20 USD. In that case your order will be filled at a price which is 1.20 USD or better.
 
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