So they're renaming the order types.

[1a2b3cppp]

FINRA recently approved a proposal that requires changes to the naming convention brokerage firms use for stop order types. FINRA Rule 5350 (Stop Orders) requires brokerage firms that trigger stop orders based on the quote (bid/ask) rather than the last trade (transaction) to rename the order types to distinguish how the order is triggered. Please note that this does not change how Scottrade triggers or executes your orders; it is simply a change to the naming convention for these order types.

As of January 16th:

Stop Order will be called Stop-on-Quote Order.

Stop Limit Order will be called Stop-Limit-on-Quote Order.

Trailing Stop Order will be called Trailing Stop-on-Quote Order

 

[NoDoji]

Quote from 1a2b3cppp:

...brokerage firms that trigger stop orders based on the quote (bid/ask) rather than the last trade (transaction)... [/B]

How can that even be legal? Talk about manipulation opportunities... :eek:

 

[Bob111]

sick of this "illusion of hard work"..rule **** my ass..how about ban subpenny?

 

[thunderbolttr]

I think the proposed rule is great to help new people understand how it actually works.

 

[Visaria]

So what is a ordinary stop going to be called now? Stop-on-last-transaction?

 

[textrader4]

All just new rules to screw us little guys!

 

[sledgeyum]

Quote from textrader4:

All just new rules to screw us little guys!

What are you talking about?

it actually unscrews some screwing "us little guys".

 

[comintel]

If this form of stop order triggers on a quote then it should indeed be called a stop on quote order.

 

[oldtime]

am I missing something?

at ib you can set your trigger up anyway you want

on the bid
on the ask
on last

stop mkt

stop limit

bid minus
bid plus
ask minus
ask plus

what more do you want?

Just special names for each of our little pets?

How bout SHIT PUKE MOC?
(means, if it takes a shit, activate when it hits my puke point, and if that doesn't work, get me flat on the close at the market)

 

[comintel]

So IB is a model of clarity on how their stops operate, but I am not so sure about Scott Trade.

From
http://about.scottrade.com/blog/blogposts/Hedging-Your-Losses-Four-Helpful-Techniques.html

it may appear that they only offer one form of stop order, and had not until recently disclosed properly that it triggered off quotes, not trades.

Maybe they offer other stop orders as well but I do not see that on their web site.

Quote from oldtime:

am I missing something?

at ib you can set your trigger up anyway you want

on the bid
on the ask
on last

stop mkt

stop limit

bid minus
bid plus
ask minus
ask plus

what more do you want?

Just special names for each of our little pets?

How bout SHIT PUKE MOC?
(means, if it takes a shit, activate when it hits my puke point, and if that doesn't work, get me flat on the close at the market)