Market Order Futures Stupidity

[MandelbrotSet]

Quote from Surdo:

Put it this way, in Friday's market you could potentially get filled up/down 10 FULL ES points, depending on your execution speed.

I strongly suggest you employ limit orders if you plan on lasting a second trading session!

Please take a look at a 1 ES minute chart of Friday's session, if you don't believe me.

surdo

as usual el surdo is correct, and given the volatility that we've experienced recently in the fiancial e-mini's, he is not even remotely exagerrating.

like he said, you should only use limit orders to enter your positions, but hey, we're all adults here, do what you want.

 

[brownsfan019]

Quote from MandelbrotSet:

as usual el surdo is correct, and given the volatility that we've experienced recently in the fiancial e-mini's, he is not even remotely exagerrating.

like he said, you should only use limit orders to enter your positions, but hey, we're all adults here, do what you want.

Really? 10 pts slippage on a market order?

Give me a break.

That is a HORRIBLE platform you are using if that's even remotely possible.

 

[moarla]

is it not so, that market orders are filled first of all other orders?
and its not so that in fast moving markets you will be probably not filled on a limit order?
And it is not so that even in fast moving markets with a market order of "1" ( ) )contracts you should see the same good fill as always (in ES with no liquidity problem) ?

 

[PocketChange]

May want to read up on CME order types before spreading misinformation.

http://www.cmegroup.com/globex/files/GlobexRefGd.pdf

Market with Protection
Market orders at CME Group are implemented using a “Market with Protection” approach. Unlike a conventional Market order, where customers are at risk of having their orders filled at extreme prices, Market with Protection orders are filled within a predefined range of prices (the protected range). The protected range is typically the current best bid or offer, plus or minus 50 percent of the product’s No Bust Range. If the entire order cannot be filled within the protected range, the unfilled quantity remains on the book as a Limit order at the limit of the protected range.

Busting trades

Some important notes:
A registered contact must call the GCC within eight minutes of the error trade. A trade stands if the GCC is not notified within the eight-minute limit

In order to bust (i.e., cancel) or price adjust a trade, the GCC must first determine if the trade is within the No Bust Range:

Current No Bust Ranges: (ES is 6 points)
http://www.cmegroup.com/rulebook/CME/I/5/88K_SA.html

• If a trade is within the No Bust Range, the trade will stand and cannot be busted or price adjusted.
• If a trade is outside the No Bust Range, the GCC will send a message (including the contract, time of trade, quantity and trade price) to all CME Globex registered contacts via Target Messaging and the quote vendor network alerting them that the trade has been busted or adjusted. The GCC will also attempt to contact directly all parties involved in the trade.

Note: Futures products that trade with implied functionality and all options contracts are price adjusted, not canceled, except in certain circumstances. View more information on the trade cancellation and price adjustment procedures in CME or CBOT Rule 588, including the No Bust Ranges for each product.