MIT vs. Stop

>If you put in a "buy stop" (trigger) for say
>$40, and the stock is trading $42, then the
>trigger will go off immediately unless you
>make the limit stop read "or lower" ...

Not at IB.

Let's say I'm short ABI from just under $33 (I am). Just after entry, I can (and did) place two buy stop orders, identical except in trigger price (IB calls this the "stop election price"). One with a trigger of 34.03 protects my bank roll in case things go bad. One with at trigger of 31.05 takes my profits should it reach that point.

These order work like a charm on a daily basis. I understand in a non-electronic world the need for the MIT, but in the DAT world, my limited experience has yet to see the need for the distinction.

JB
 
Originally posted by Turok
>If you put in a "buy stop" (trigger) for say
>$40, and the stock is trading $42, then the
>trigger will go off immediately unless you
>make the limit stop read "or lower" ...

Not at IB.

Let's say I'm short ABI from just under $33 (I am). Just after entry, I can (and did) place two buy stop orders, identical except in trigger price (IB calls this the "stop election price"). One with a trigger of 34.03 protects my bank roll in case things go bad. One with at trigger of 31.05 takes my profits should it reach that point.

These order work like a charm on a daily basis. I understand in a non-electronic world the need for the MIT, but in the DAT world, my limited experience has yet to see the need for the distinction.

JB

I see what you're doing, which is fine...the distinction that I am wondering about is that the "closing" buy order is placed below the current market price...if it were an opening (entry) trade then I wonder if they would treat it the same. Our systems do all this stuff as well, I was just wondering if you have to make the order read "closing" or "opening"....

Anyway, I am glad to see that IB has that flexibility for you.
 
>if it were an opening (entry) trade then I wonder
>if they would treat it the same.

Yes. I have experience with that as well.

>I was just wondering if you have to make
>the order read "closing" or "opening"....

Yes.

JB
 
Back
Top