Pending limit orders execution

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

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.

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!

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.

pending orders do become market orders when they get tirggered.

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

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?

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 :)

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.