a stop limit becomes a mkt order when the trigger gets hit but will not fill at a worse price than the limit
"Use Limit Orders"
- Thread starter kmiklas
- Start date
so it becomes a limit order, rather than a market order.I am hoping so since limit orders or cheaper with the broker I am using.
no it is a market order once the trigger is hit but it will not trade above the sell stop limit or below the buy stop limit price
y
you enter a defacto mkt order by entering buy +x the ask or sell -x the bid where x is the number you are sure under normal circumstances (if there is such a thing) will get filled
Correct me if I'm wrong, but by crossing the spread, the limit order would be immediately filled in the majority of cases, and it thus functions as a market order.
On the occasion where the price moves away from the limit price in the moment after submission and before election, the order becomes a limit, and will not execute. In this case, User would have to modify the limit price to match the new ask (if buying) or bid (if selling) for the transaction to occur.
This is wrong. A stop-limit order is *never* a market order. When the stop gets hit, it triggers the initiation of a new limit order entered into the book. Just because the stop sits out there waiting to be triggered by the market does not make it a "market" order; it's just a trigger to do something else.
http://www.cmegroup.com/confluence/...pesforFuturesandOptions-StopOrder-FuturesOnly
Yes, the user would have to modify it because an adverse change in the spread or liquidity occurred. This is what you *want*.
Hehehe! So let me get this straight...
A stop limit becomes a market order when stop is hit. So what does a stop market order become when stop is hit? A limit order? I am glad you are not my broker. If you work for a brokerage firm, which one do you work for so I can avoid them?
It`s not stop limit order,it`s stop market order.The difference is you cant place stop buy order below the price and stop sell above the price.
Well I am guessing if you set the limit price way below the stop price there should be no reason it won't get filled but that pretty much just makes it a stop-market order.