What Happens when I have multiple Orders for Same Contract (CME Globex)

I

IAS_LLC

I have a few questions regarding what happens under different scenarios when I place multiple orders on the same contract on CME Globex. If there are broker specific results to these questions, I am using IB.

Scenario 1:
The front month CL contract is trading at BESTBID (PRICE_B) and BESTASK (PRICE_A). In order to establish my place in the que, I place four orders
ORDER_1 : Limit Sell @ PRICE_A + 1pip (PRICE_1)
ORDER_2 : Limit Sell @ PRICE_A + 2pip (PRICE_2)
ORDER_3 : Limit Buy @ PRICE_B - 1pip (PRICE_3)
ORDER_4 : Limit Buy @ PRICE_B - 2pip (PRICE_4)​
What I think Should Happen:
As each order is placed, I should start establishing que position at each of those price points. Placing ORDER_2 should not effect my que position on ORDER_1, no should it cancel it. If the market doesn't move, I should have 4 open orders at 4 different prices. If ASK moves towards PRICE_1, ORDER_1 should be filled once I reach the front of the line. After the fille, ORDER_2-4 should remain open.​
What actually Happens?? Submitting ORDER_2 doesn't send me to the back of the line at PRICE_1... does it? None of the orders cancel each other... do they?

Scenario 2:
Assume the same ORDER_1-4 setup as Scenario 1. My crystal ball tells me that the new BESTASK will soon be PRICE_1, but I KNOW I can get a Market Buy order filled at PRICE_A just before it does so I place a market order.
ORDER_5 : Market Buy, with BESTASK @ PRICE_A​
What I think Should Happen:
ORDER_5 will be filled at PRICE_A, and as soon as the market moves and I reach the front of the line at PRICE_1, ORDER_1 will be filled for a 1 pip profit​
What actually Happens??

Scenario 3:
Assume a similar scenario to 2 and 3, but I was incorrect about where my market order would get filled. Lets say I was the front of the line at PRICE_1 and ORDER_5 is filled at PRICE_1. Do I fill my own order and get charged commission and exchange fees for both the buy and sell side even though I filled my own order?
​
Thanks in advance!
Brad
 
I fear that the "New Posts" feature on the new ET may encourage people not to look at this post since its a few hours old, so..... BUMP
 
scenario 3 - when u place a trade, your ultimate counterparty is your FCM which clears all your trades. they have the risk controls in place, so your account number will be matched against another account. assuming no market, same account numbers don't get filled. if there's a market, your market order is likely to match with one behind your first order. or globex will find counterparties for both of your orders and you get charged commission.
 
i don't really know what you want from the first two.... but either way being the first to quote does not guarantee being filled first because the order matching algo have other rules to follow and that includes filling others over yours first.
 
jamesmawm said:
i don't really know what you want from the first two.... but either way being the first to quote does not guarantee being filled first because the order matching algo have other rules to follow and that includes filling others over yours first.
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It was my understanding that most globex markets are FIFO, meaning that if u are first to quote at a particular price point, you will be the first filled at that point. Is this incorrect?
 
Submitting new orders at different prices does not affect your place in the queue for earlier submitted orders. Most cme products are time-price priority unless otherwise stated in products spec. Some products are pro-rated where volume is king and someone can jump your place in queue because of size. Contact the cme market surveillance team they will be happy to help you.
IAS_LLC said:
I have a few questions regarding what happens under different scenarios when I place multiple orders on the same contract on CME Globex. If there are broker specific results to these questions, I am using IB.

Scenario 1:
The front month CL contract is trading at BESTBID (PRICE_B) and BESTASK (PRICE_A). In order to establish my place in the que, I place four orders
ORDER_1 : Limit Sell @ PRICE_A + 1pip (PRICE_1)
ORDER_2 : Limit Sell @ PRICE_A + 2pip (PRICE_2)
ORDER_3 : Limit Buy @ PRICE_B - 1pip (PRICE_3)
ORDER_4 : Limit Buy @ PRICE_B - 2pip (PRICE_4)​
What I think Should Happen:
As each order is placed, I should start establishing que position at each of those price points. Placing ORDER_2 should not effect my que position on ORDER_1, no should it cancel it. If the market doesn't move, I should have 4 open orders at 4 different prices. If ASK moves towards PRICE_1, ORDER_1 should be filled once I reach the front of the line. After the fille, ORDER_2-4 should remain open.​
What actually Happens?? Submitting ORDER_2 doesn't send me to the back of the line at PRICE_1... does it? None of the orders cancel each other... do they?

Scenario 2:
Assume the same ORDER_1-4 setup as Scenario 1. My crystal ball tells me that the new BESTASK will soon be PRICE_1, but I KNOW I can get a Market Buy order filled at PRICE_A just before it does so I place a market order.
ORDER_5 : Market Buy, with BESTASK @ PRICE_A​
What I think Should Happen:
ORDER_5 will be filled at PRICE_A, and as soon as the market moves and I reach the front of the line at PRICE_1, ORDER_1 will be filled for a 1 pip profit​
What actually Happens??

Scenario 3:
Assume a similar scenario to 2 and 3, but I was incorrect about where my market order would get filled. Lets say I was the front of the line at PRICE_1 and ORDER_5 is filled at PRICE_1. Do I fill my own order and get charged commission and exchange fees for both the buy and sell side even though I filled my own order?
​
Thanks in advance!
Brad
More...
 
Junior_CTA said:
Submitting new orders at different prices does not affect your place in the queue for earlier submitted orders. Most cme products are time-price priority unless otherwise stated in products spec. Some products are pro-rated where volume is king and someone can jump your place in queue because of size. Contact the cme market surveillance team they will be happy to help you.
More...

Thanks Junior
 
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