Pending limit orders execution

raulgherman1

Ahli sejak Aug 21, 2014 11 hantaran

Feb 24, 2015 at 12:55

Ahli sejak Aug 21, 2014 11 hantaran

Hi all,

i am starting this topic because lately i have noticed the following:

- as definition states, a pending limit order, be it buy limit or sell limit, should be executed at requested price or better
- most ECN / DMA, etc. brokers offering StopLevel = 0 for their trading symbols / instruments and MT4 platform to retail clients state that they only pass the quotes from LPs to clients, and orders from clients to LPs

now, under this light, when questioned, most brokers state that when the pending limit price gets triggered, this order turns into a market order -- that makes the previously stated definition useless

i know at least one broker that states that limit orders are executed as they should be

please let me know what you think on this matter, and also, if your broker proceeds as described above

best regards,

Raul

forex_trader_234835

Ahli sejak Mar 04, 2015 54 hantaran

Mar 10, 2015 at 20:15

Ahli sejak Mar 04, 2015 54 hantaran

raulgherman1 posted:
Hi all,

i am starting this topic because lately i have noticed the following:

- as definition states, a pending limit order, be it buy limit or sell limit, should be executed at requested price or better

Hi, Raul.

What do you mean by "requested price or better"?
As far as I know, all limit orders should only be executed at the stated price. Never heard of the "better" price. All orders, such as "Sell Limit, Buy Limit and Take Profit" are opening and closing only set in the order price.

VlasovTrend

Ahli sejak Dec 10, 2014 75 hantaran

Apr 08, 2015 at 09:54

Ahli sejak Dec 10, 2014 75 hantaran

Golden_Midas posted:
raulgherman1 posted:
Hi all,

i am starting this topic because lately i have noticed the following:

- as definition states, a pending limit order, be it buy limit or sell limit, should be executed at requested price or better

Hi, Raul.

What do you mean by "requested price or better"?
As far as I know, all limit orders should only be executed at the stated price. Never heard of the "better" price. All orders, such as "Sell Limit, Buy Limit and Take Profit" are opening and closing only set in the order price.

Right!

Let's make a profit)))

alexforex007

Ahli sejak Oct 11, 2013 769 hantaran

Apr 09, 2015 at 20:10

Ahli sejak Oct 11, 2013 769 hantaran

When limit orders get triggered, they do become market orders. If the price is moving very fast and gaps, passing your limit order level, you can actually get a worse price, not a better price.

alexforex007

Ahli sejak Oct 11, 2013 769 hantaran

Apr 09, 2015 at 20:13

Ahli sejak Oct 11, 2013 769 hantaran

pending orders do become market orders when they get tirggered.

forex_trader_254009

Ahli sejak Jun 02, 2015 4 hantaran

Jun 03, 2015 at 10:45

Ahli sejak Jun 02, 2015 4 hantaran

I remember "stop-imit" orders. I don't know of any online broker who offers them.

forex_trader_254009

Ahli sejak Jun 02, 2015 4 hantaran

Jun 03, 2015 at 10:45

Ahli sejak Jun 02, 2015 4 hantaran

you can place a stop order, a limit order, stop loss and take profit. tiny bit of slippage is common with all.
Is 15ms/160ms proxy/server latency (one way), connection quality usual?

forex_trader_250523

Ahli sejak May 18, 2015 17 hantaran

Jun 05, 2015 at 07:57

Ahli sejak May 18, 2015 17 hantaran

alexforex007 posted:
When limit orders get triggered, they do become market orders. If the price is moving very fast and gaps, passing your limit order level, you can actually get a worse price, not a better price.

If a Limit order is activated by a gap, you'll actually have a better price.
With Stop orders activated by a gap, you'll have a worse price.

Let me know if you need a specific example for your understanding :)

forex_trader_250523

Ahli sejak May 18, 2015 17 hantaran

Jun 05, 2015 at 07:59

Ahli sejak May 18, 2015 17 hantaran

raulgherman1 posted:

please let me know what you think on this matter, and also, if your broker proceeds as described above

best regards,

Raul

My broker proceeds as you described.

forex_trader_165856

Ahli sejak Dec 03, 2013 599 hantaran

Jun 16, 2015 at 12:52

Ahli sejak Dec 03, 2013 599 hantaran

raulgherman1 posted:

i know at least one broker that states that limit orders are executed as they should be

best regards,

Raul

What broker actually executes at the requested Limit order?

when using MT4, our limit orders are held on their server then executed as a market order with their LP, however when using a real platform (FIX API enabled) the limit orders are on aggregation engine ( market book).

http://www.atcbrokers.co.uk/legal/order_execution_policy.pdf

The problem most brokers face is that they only offer MT4 platforms to their customer which isn't a real ECN platform but a toy for show. Our orders have to go through the MT4 bridge to meet the real world ( order book).

Solution is to stop using MT4 and use an ECN enabled platform where prices are executable.

kvetinac

Ahli sejak Jun 06, 2014 4 hantaran

Jun 30, 2015 at 06:39

Ahli sejak Jun 06, 2014 4 hantaran

There's a big difference between pending orders. Or, at least, should be.

Stop orders (= buy stop, sell stop, stop loss) become market orders when triggered. That's a rule as you're in a price (liquidity) taker role with them.

Howewer, with a proper broker, limit orders (= buy limit, sell limit, take profit) shouldn't become market orders, since you're effectively not a price taker, but a price maker there - your limit orders should hang in the orderbook for other participants to be filled. Per definition, they should be filled at the exact quote, or not filled at all.

But apparently, in our MT4 retail world, most "brokers" don't adhere to these key principles at all. Those who do let you place limit orders inside the spread, one U.S. based broker even pays you for your limit orders that get filled because with limit orders, you're actually providing (instead of consuming) liquidity.

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