Question on working with stops: classic on limiters + stops integrated into position - page 4

[Renat Fatkhullin]

HideYourRichess:
I do not know what the argument is about, but in relation to the orders I would like to say the following. The logic behind the execution of Buy Stop and Sell Stop. As I was taught, on amex the stops are activated by the price of the last deal. Not by a bid or an ask, but by a flipper. As soon as the flipper appears in the stop, the order is converted into a market order. It's not clear what you mean by "price".

Limit orders are activated when a suitable Bid or Ask (depending on the type of order) is found.

You were able to match your desire to buy at X price with the seller's Ask price at the right volume - the trade will take place. Last is the price of the last trade and is not important here.

ps: besides, with exchange execution all decisions about matching and execution are entirely on the side of the exchange or liquidity provider. the server itself is not involved in this process.

[Renat Fatkhullin]

Sieg:

Well, well...

That's what I thought.

I suggest you take another week to think in silence. During that time you can read the documentation, raise your level of knowledge, and practice more at the same time.

What you have stated here is a completely erroneous judgement.

[Hide]

On the am exchange, the stops are triggered as I have written, by last. It is clear that your terminal may be different, but on the exchange it is what it says. The market price, in the terminology of these markets, is usually the price of the last trade.

[Renat Fatkhullin]

HideYourRichess:
On the am exchange, stops are triggered as I have written, at last. I understand that it may be different in your terminal, but on the exchange it's the way it's written. The market price, in the terminology of these markets, is usually the price of the last trade.

There seems to be some misunderstanding.

What do you call "triggering" (let's take the stop to buy as an example):

1. Stop Loss order activation when Last has broken our level, as a result the order is executed at the current market Ask price (which has nothing to do with Last and can be very far from Last for a long time)
   
2. activation of a stop-loss order when Last has broken our level, resulting in an order being executed at Last?

[TheXpert]

Renat:

So the conversation is about triggering, not execution.

[Renat Fatkhullin]

TheXpert:

So we are talking about triggering, not executing.

So 80% of people will think exactly about performance.

That's why I'm clarifying. It is clear that it makes sense (and not always) to throw a stop order to the market upon triggering a flipper, but there is no getting away from market execution (Bid or Ask depending on the order) of this order.

And some traders use more subtle adjustments of trigger time for the sake of better execution. For example, trying to slip a limit order with the needed price with lifetime of a fraction of a second or IOC.

The interesting thing happens when instead of placing a bad market order with unpredictable execution they start to play a subtle game, the price does not have time to execute and rolls back. This is not far from a lawsuit from the client, although they still fight back somehow (there was no volume in the market, we did not get it, the evil GS ate it all!).

[[Deleted]]

1. How is take profit implemented on the exchange? As a limit order or as a stop order?

2. Where are stop orders stored? At the broker or at the exchange?

[Renat Fatkhullin]

220Volt:

1. How is take profit implemented on the exchange? As a limit order or as a stop order?

Almost universally - not implemented on exchanges in any way. Stops are the usual limit or market (thrown in at the right time) orders.

2. Where are stop orders stored? At the broker or at the exchange?

At the broker, which leads to complaints about the quality of their execution. And this quality is sometimes so monstrous that no forex-traders would ever dream of. But there is nothing to complain about.

[Hide]

Renat:

There seems to be some misunderstanding.

What do you call "triggering" (let's take the stop to buy as an example):

1. activation of a Stop Loss order when Last has broken our level, as a result the order is thrown to the market where it is executed at the current market Ask price (and which has nothing to do with Last and may be very far from Last for a long time)
   
2. The activation of a stop-loss order when Last has breached our level, resulting in the order being executed at Last?

First. Well, actually the rule is a bit more complicated than stated, I was too lazy to write it. Appropriate bids and asks are also considered, but usually everything is triggered by Last. ie, no one in their right mind would allow the bid/ask and Last to diverge greatly. Full rule of thumb:

Stop orders are triggered and become market orders under the following
circumstances:
Buy Stop Order and the bid or last sale in the series is >= the Stop Price
Sell Stop Order and the ask or last sale is <= the Stop Price
Stop Limit Orders are triggered and become straight limit orders under the
following circumstances:
Buy Stop Limit and the bid or last sale in the series is >= the Stop Price

Sell Stop Limit and the ask or last sale is <= the Stop Price

[Renat Fatkhullin]

HideYourRichess:

First. Well, the rule is actually a bit more complicated than stated, I was too lazy to write it. The relevant Bids and Asks are also considered, but usually everything works on the flipper. i.e. no one in their right mind would allow supply/demand and the flipper to get very far apart. Totally the rule:

That is, just a mutual misunderstanding.

The execution process is more important, which is what I was more focused on. Yes, and the phrase I mentioned "the orders are activated when the appropriate Bid or Ask is found" is fully confirmed by the above trigger conditions, where Last is just an addition to Bid/Ask and is in fact deliberately in/equal to Bid/Ask.