You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
loop forever
- Thread starter kiwi1
- Start date
Maybe paper trading account can't accurately simulate FIFO.
I donât know how IB handles these kinds of orders with paper trading, but this is how it works in the real worldâ¦
Itâs because your limit order is placed in the queue of orders at that price, and the market must trade enough at that price to hit your limit order in the queue.
But as soon as any order is filled at the stop price, your stop (market) order becomes a live market order, and you are taken out of your position at a tick loss.
So this makes it much more likely that your stop will be activated before your profit target is hit.
Itâs because your limit order is placed in the queue of orders at that price, and the market must trade enough at that price to hit your limit order in the queue.
But as soon as any order is filled at the stop price, your stop (market) order becomes a live market order, and you are taken out of your position at a tick loss.
So this makes it much more likely that your stop will be activated before your profit target is hit.
Its the spread.