Reply
 
Thread Tools
  #125  
Old Aug 29, 2009 11:52pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default How MMs fill large orders

Quote:
Originally Posted by LasVahGoose View Post
To be honest, I don't think I've ever really thought about what the market maker is doing. I'll have to do some homework.


P.S. I just placed an order for the Trading & Exchanges book by Harris.

Several years ago I wrote an article about one technique that can help a market maker (or a bank in the FX world) to fill a large commercial customer order. Here's a link:

http://market-geeks.com/articles/009_StopHunting.php
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #128  
Old Aug 30, 2009 1:13am
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by Scotty B View Post
Scott,

Thanks for sharing man. Oh, I liked reading your profile..Sounds like you have been to hell and back in your pursuit of a trading career. Kudos to you for sticking with it! ...
Hi Scotty,

Well the hell part may be accurate, but I'm not sure I've quite made it back yet.

I'm actually part way through the Osler paper now; thanks for that! I really appreciate your approach to the discussion here. When you have an idea, you don't get all mysterious and cryptic about it...you lay it right out there in all its detail for everyone to understand. Hope you're having a good weekend.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #205  
Old Aug 30, 2009 9:24pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by Scotty B View Post

Old Larry says: Limit orders execute quickly if they are on the wrong side of the market but they do not execute if they are on the right side of the market.

[/font][/color]

Hopefully I can clear up this "right side" and "wrong side" terminology with respect to order types since this is one of the subjects I used to teach at Fidelity Investments. Unfortunately, the FOREX world uses the term "limit order" to cover anything that isn't a market order, and this causes confusion. In the securities markets, we make a major distinction between limit orders and stop orders.

Limit orders are intended to BUY at prices that are LOWER than the current market price, or to SELL at prices that are higher. Since it makes obvious sense to anyone that BUYING LOW and SELLING HIGH are good ideas, limit orders are said to be placed on the "right" side of the market.

Stop orders are intended to BUY at prices that are higher than the current market price (for instance to buy into a breakout if it occurs or to close out a losing short position), and to SELL at prices that lower than the current market price (to sell into a downside break or to close out a losing long position). Since the general public would consider it kind of stupid to want to buy at higher prices and sell at lower prices, we used to refer to these as being on the "stupid side" or the "wrong" side of the market.

This is NOT to say that stop orders are stupid or wrong. It was a way of explaining to the novice what the essential distinction is between the two order types.

In regards to order flow; order books like the one to which you posted a link, as well as NASDAQ level II and so forth are showing limit orders. These orders tend to restrict price to a range because sell limits are above the market and buy limits are below.

Stop orders tend to do the opposite. When the trigger price to a regular stop order is hit it becomes a market order (although there is such a thing as a "stop-limit" order which when triggered becomes a limit order ). Because buy stops are above the market they tend to move it even higher when hit, and since sell stops are below the market they tend to increase downward momentum.

We used to teach the following mnemonic device to help people remember the four possibilities:

SLoBS
BLeSS

This reminds us that Sell Limits (SL) and Buy Stops (BS) are ABOVE the market, while Buy Limits (BL) and Sell Stops (SS) are always BELOW the market.

This being said... it is possible in the equity markets to place a limit order on the "wrong" side of the market. This would be done in a fast moving situation where you want to avoid huge slippage. So if Amazon dot BOMB suddenly shot from 100 to 110 in a few seconds, you might place a limit to buy at 115, even though that's on the "wrong" side of the market. Orders like this would usually get filled immediately because you're saying you're willing to pay up to 115 for the stock and it's currently at 110.

We had to be careful to determine the customer's intent in a situation like this though because they may not be familiar with the terminology. The customer might only want to buy AMZN if it ever gets up to 115 and not before, in which case the correct order would be a buy stop, not a buy limit.

Merlin and I had a great debate about this once... not about any of the facts in regards to how the orders work (which we both know) but in regards to how they should be "classified." He sees a major distinction between market and limit orders, whereas I see the major distinction as being between limit and stop orders. Here's a link to the debate we had:

http://www.forexfactory.com/showthread.php?t=87133
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #208  
Old Aug 30, 2009 10:37pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by LasVahGoose View Post

Is it that basically limit orders are on the book and stop orders are off book?
Exactly, and this goes to what the great beady-eyed one was saying in the debate. He's right in that every order, no matter how complicated, eventually turns into either a market order or a limit order. That's why he perceives those two as being the most fundamental types.

Limit orders sit on the order book. They are the bids and asks (offers) that you see in NASDAQ level II or on the site Scotty posted earlier. Bids are just limit orders to buy below the market and offers are just limit orders to sell above the market.

When a market order comes in, it "hits" one of the two inside limit orders. If the market order is to buy, it hits the offer. If it's an order to sell then it hits the bid. If the market order is for more volume than the limit order that it hits, then it gets filled by hitting the next limit, and the next until it's completely filled. This is what we see as price movement.

So if the offer side of the book looks like this:

134.50 300
134.49 500
134.48 100
134.47 200

...and a market order to buy 500 comes in, it will hit the first two offers and wipe them out completely, then partially wipe out the 500 offered at 134.49. So the fill would be 200 at 134.47, 100 at 134.48 and 200 at 134.49. The effect of the market order would now make the offer side of the book look like this:

134.50 300
134.49 300


As far as stop orders go, Merlin was right in saying that they are really market orders, "stopped" from reaching the market until a certain condition is met (we agreed on this point the whole time; our disagreement was on what was more "important") Anyway, that's why stop orders aren't on the book. The broker is holding them in house until such time that the trigger price is reached, at which point they simply become market orders and start hitting the bids or offers.

Now I say this with a grain of salt when it comes to the FOREX market, because each broker uses any old terminology and practices that they want. In the case of Oanda, the stops ARE on the "book" so to speak, because they have a tool where you can see where all the limits and stops are clustered (although they use the term "limit" for both limits and stops, which confuses the issue).
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #209  
Old Aug 30, 2009 10:46pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by capitalist88 View Post

...and a market order to buy 500 comes in, it will hit the first two offers and wipe them out completely, then partially wipe out the 500 offered at 134.49. So the fill would be 200 at 134.47, 100 at 134.48 and 200 at 134.49.
By the way, this goes right to the heart of the concept of liquidity. I used to tell a story to my classes to illustrate the idea of liquidity. Back when I was an trader, a woman calls me up about how she was robbed when she tried to buy some stock because "they" kept moving the price up on her. Well I checked it out and she had placed an order to buy 10,000 of some dog crap OTC BB stock. So I had to explain to her that "they" weren't moving the price away from her and giving her higher and higher fills. SHE was. I was like.. "Maam, the price is going up because YOU'RE BUYING IT." The offers were like in the hundreds, and her order was blowing through like dozens of levels in order to fill.

This is an illustration of how limit orders provide liquidity to fill market orders (or in this particular case how the LACK of limit orders leads to a lack of liquidity).
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #319  
Old Sep 2, 2009 9:23pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by hensch View Post
I wasn't aware of that and I'll also will keep an eye on it.

If been following the futures LII for a few hours, and if my understanding about market/limit orders (after reading your interesting posts on the subject) is correct it's been full chop and lame movement, good to spot a range market.

I assume that most were market orders.
They were ALL market orders. They were also all limit orders.

Every trade that happens consists of one person's market order matching up with another person's limit order.

I'm simplifying by ignoring certain situations where orders can be "crossed" manually, but as far as I know that's a minor exception to the fundamental market dynamic.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #322  
Old Sep 2, 2009 10:49pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by Cellar Door View Post
Hmm it seems everyone is talking about the "Big Players", order books and the likes... i find it strange that nobody has discussed one of the ways to spot what the "Big Players" are planning to do at any one time , in fact i never see this "thing" mentioned on any of the trading forums and i am beginning to wonder why this is.
The reason no one talks about it is simple. Tapping the phones of large banks is illegal.


Oh crap! I just gave it away.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #362  
Old Sep 3, 2009 9:35pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by Skracor247 View Post
Hey slim please see post #1. That's all it took for me, and if I can get IT so can you!

Good Luck
Well since I'm not one of the mystical kung-fu cryptic thread kinds of posters... I'll just blurt out exactly what I see on those charts. If the big important FF "insider super duper secret holders" want to send me PMs telling me not to give it away, I guess they'll have to pound sand.

All three charts show annotations which pertain to a single price bar. Each bar does the following:

1. It opens at or near an area of consolidation which is a previously tested area of S/R.

2. Price then moves away from the open (obviously) either to break the S/R area or to bounce off of it. In the first two charts it's a breakout, and in the third it's a bounce. This classic "textbook behavior" draws in the herd, forming the first wick of the candle.

3. The bar then proceeds to reverse and move past its open in the other direction. The herd craps in its pants.


Now I'll wait for the angry emails from George Soros.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #364  
Old Sep 3, 2009 11:17pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Well I certainly can't disagree with th

hold on, someone's pounding at my doo
alk;faj

al;kjkasjlnmz';jnz.m,''/s/s//
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #416  
Old Sep 4, 2009 9:58pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by Cellar Door View Post
Here is something for you all to ponder, since you are talking about what is behind price overflow.

Lets say that you want to find the next trend reversal on GBP/USD, to do this you need to look for a trend reversal first in the commodity pairs then the yen pairs and then the denominator, then you will see the trend reversal in the others.
I'm still pondering what price "overflow" is. At first I assumed it was a typo, but since you typed it in your post heading as well as in the body, I guess it must be some new terminology that newbies like us don't know about yet.

__________________
My 10-year Carry Trade Plan
Reply With Quote
  #419  
Old Sep 4, 2009 10:29pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by Cellar Door View Post
Yes orderflow it is.....

Capitalist it seems you do not like all this cryptic talk.


Markets are like a flag in the wind.

Grasshopper looks and says, "the flag is moving."

Capitalist looks and says, "No grasshopper...the wind is moving."

Master Po looks at grasshopper and Capitalist and says, "Not the flag, not the wind... it is mind that is moving."
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #463  
Old Sep 5, 2009 4:10pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by jpat1023 View Post
hmm...I didn't catch any facetiousness...I even re-read that part of the thread...either way, if it didn't help you, it will help someone...I know at a time it would have helped me.

btw, any idea what happened to Cellar Door's posts? Now it looks like I was talking to myself, lol. At least you can still see that I quoted him...

Someone must have caught him unloading an illegal truckload of BS in the thread. "Price overflow" my green Irish ass....

FF is getting overrun with self-proclaimed gurus.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #465  
Old Sep 5, 2009 4:20pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by pipmutt View Post
This is almost painful!

Where exactly are you planning on getting this 'order flow' data which you're going to 'actually watch'? EBS? Reuters? Don't tell me, CME currency futures!

Plenty of people talking up a good game here and trying to make it all sound extremely complicated and something only they could possibly understand or know the 'secret' about, complete with cryptic nonsense, but at the end of the day there's absolutely nothing of any substance!

You sound surprised. This thread looked like a skunny clone from the first page.

That being said however, the majority of posters who are honestly trying to learn have placed an enormous amount of helpful resources on here. There's no "big secret" of course, but Scotty and others have done enough research into market mechanics and structure to provide a solid background for any serious trader's education. Kudos to the people who have done stuff like that here.

As far as the cryptic mystics go... ...they provide just enough entertainment to break up all the serious reading.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #468  
Old Sep 5, 2009 4:44pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by jpat1023 View Post
Let me ask you a question:
If price moves into an obvious area of demand(support to the left), and quickly rebounds and heads north, what does that say about the orders that were sitting in that area waiting to be filled?
Can small orders quickly soak up supply and reverse price?
I know this question wasn't directed to me, so I'll butt out if requested, but I want to see if I can add some clarity here. Keep in mind also that I'm kind of thinking this through as I type it...

The fact that price "quickly rebounds" from the demand area doesn't tell us anything about the orders that were waiting there. Here's why. There can only be two types of orders that were waiting down below the market; buy limits and sell stops.

The demand down at that level comes from the buy limit orders. (These may have originated from a bank trying to flatten its inventory levels at a good price or from commercial customers out in the real economy who are looking to hedge exposure from international transactions, or whatever). But limit orders don't move price. They stop price movement. Only market orders can move price.

So the buy limit orders only made the price stop. They didn't make it bounce. So what did? Was it the stops sitting down there? No, because those would have been sell stops, and would have just been added to the flow of downward market orders hitting the limits. So the sell stops weren't responsible either.

The only thing that could have made price bounce sharply is newly entered market orders to buy. These could have just been placed as market orders from traders watching in this time frame. They also could have originated from buy stop orders being placed down in some lower time frames. In other words, if you look inside a bouncing daily bar, you'll see 96 15-minute bars, and shorter term swing traders are placing their stops beyond the peaks and troughs of that frame. Inside each of those 15-minute bars are 90 10-second bars where scalpers are placing stops for large positions on both sides of the action.

But the point is, the fact that price bounces off a level tells us nothing about prices that were already sitting at that level before price reached it. The only thing that tells you anything about the resting orders at a level is the fact that price stops there, or the fact that price breaks through the level. If the breakthrough is whimpy, there weren't many stops there. If the breakthrough is like the koolaid guy coming through a brick wall, there were a lot of stops there.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #471  
Old Sep 5, 2009 6:39pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by auxesis View Post
Just my humble thoughts,


What would happen if the final balance trips into a level where there's more counter orders than needed to fill the original move?
It depends on whether the "counter orders" are market orders or limit orders. Remember, every transaction consists of a market order colliding with a limit order. Market orders don't just "cross" and fill each other.

If the market order is smaller than the limit order it hits, then the market order is completely filled at that price and the limit order is partially filled at that price. Some large limit orders sit on the books for weeks or more before being completely filled.

If the market order is larger than the limit order it hits, then the market order is partially filled at that price and the limit order is completely filled. The rest of the market order then moves to the next available limit order and continues to fill at that price, and so on.
__________________
My 10-year Carry Trade Plan

Last edited Sep 5, 2009 7:00pm
Reply With Quote
  #475  
Old Sep 5, 2009 7:12pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by auxesis View Post
Just using this as an example, if pair ABC/DEF moves to 1.0000 wouldn't all orders, limit stops & profit, market buy and sells sitting at that price be activated, not necessarily filled as price may have to move to find a match if not able to offset all at that level? Guess it would be better to say filled, as the b roker may be counterparty until it can be off loaded.

No. You're thinking about how bucketshop retail FX brokers work where they fill every customer's order instantaneously. They do this out of their own capital because retail FX traders are so tiny in relation to the overall market.

In the actual interbank market, limit orders can be partially filled and may take a long time to get completely filled. They don't just get "activated" and turned into market orders. That would cause them to fill at prices away from the stated limit, which would cause the customer to sue the bank for financial malpractice or something.

Stop orders are the only order type that get triggered and turned into market orders. Unfortunately, the retail FOREX brokerage house haven't adopted any industry standards like the security markets have, so they use any old terminology they want. They call stop orders "limit orders" even though that's not what they are. That confuses everyone to no end.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #478  
Old Sep 5, 2009 7:40pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by pipmutt View Post
lol, great description, but how would knowing how many stops were hit help us?
It doesn't, since it's old news by the time it's apparent LOL. I'm not disagreeing with your "emperor has no clothes" evaluation of the thread at all, as you'll note by your most recent vouch.

The only possible information we could get from past events on a chart is what I think of as "order consumption." We can see that certain order types have been eliminated or reduced in size.

For example, if price breaks up through a level like the koolaid guy, we can be pretty sure that the stop orders that were just above that level have been triggered, turned into market orders, and then eliminated all limit orders up to point at which price meets its next resistance.

Alternatively, if price keeps hitting the same level while failing to break through it, we can surmise that whatever limit orders are sitting at that level are getting partially filled, and therefore "consumed" each time this happens. At some point it's going to be totally filled, the next market order will be larger than the limits, and price will be able to advance to the next limit area. That's why multiple hits of the same level doesn't necessarily mean that the level is strong. It could very well mean that the level is almost broken.

But as you say, all of this is guesswork without being able to see all the bank's order books, knowing where all the stops are, tapping the phones of the banks, watching through a telescope to see how full Alan Greenspan's briefcase is on the way to the fed meeting (I don't know if Ben Bernanke carries a briefcase), hiring Bud Fox to follow all the big players around and break into their offices at night and so forth...
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #481  
Old Sep 5, 2009 8:30pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by pipmutt View Post
Good point about a level being hit a few times, I hadn't thought of it like that, is this why they say triple tops are actually quite risky areas?
Probably. Someone posted a link to a video on here (Sam Seiden I think?) and he talked about the same thing. He was saying that the more times a level has been hit, the more likely it is that a real breakout will happen there.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #482  
Old Sep 5, 2009 8:40pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

I almost forgot...I can never visit one of these mystic-cryptic-kung-fu-big-secret-pattern-underlying-all-of-trading threads without posting a link to THIS video!

EDIT: whoops, didn't want the embedded version

www.youtube.com/watch?v=YldowmD89ng
__________________
My 10-year Carry Trade Plan

Last edited Sep 5, 2009 8:52pm
Reply With Quote
  #512  
Old Sep 6, 2009 5:35pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by FXSurfer View Post
Of course not - you need stochastic. LOL!

Any comments on the post below? It seems like there are some posts that aren't really in agreement with it:



Sorry if it's been covered and I missed it. I'm trying to keep up with the thread. If you could help point me to the post(s)... Thanks People!
In the post linked below I gave a concrete example of exactly what Darkstar is talking about:

http://www.forexfactory.com/showpost...&postcount=208

Limit orders are static, market orders are dynamic. Limit orders create what I call "density" in the market, or resistance to movement. Market orders cause movement when they are large enough to overwhelm the limit orders one after the other as Darkstar describes.

This is why I can't subscribe to the idea that "lack of buying causes prices to move down and vice-versa." From a purely market mechanical perspective, in order for price to go anywhere, someone FIRST has to send in a MARKET order (not a limit) which will then collide with a limit to create a transaction print on the tape. If all we had were limit orders, nothing would ever happen.

In other words, suppose we could magically remove all resting demand from the market, i.e. remove all buy-limit orders on the "book." This action by itself would cause exactly NOTHING to happen. It wouldn't be until someone actually placed a market order to sell (in this case even for just one unit) that price would plummet down to zero.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #514  
Old Sep 6, 2009 6:03pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by jpat1023 View Post
Damnit Capitalist, I need to sleep, but I can't pass up a good discussion.

Ok, you sort of proved my point about lack of buyers. Was it the market sell order that pushed price down or was it the fact that there were no buyers to buy from the lone seller?
In your own example its the fact that all buyers have been eliminated that allow price to reach zero.
Of course, both are needed, but what actually moves price?

If your selling a car and nobody wants to buy it, what do you do to the price? You lower it until you can find a buyer, right? So what...
I'll buy that. The analogy with me lowering my car price assumes that I would have to also PUBLISH that price so that the rest of the market could see it. Of course this exactly what the bid and ask are in the market; published intentions of buyers and sellers. So if we suddenly saw that EUR/USD was bid 0.0000 and offered at 1.4250, then I guess that might induce some panic selling. In that sense you're right, the lack of buyers would cause a reaction in the market.

But this is only true for the closest bid and ask, which is all we can see.

This brings us to another related area of market dynamics. We've been talking about how buy and sell order placement influences market movement. But the full cycle of the market is that people place orders, which cause price to move, which in turn causes people to place orders. It's a self-referential loop.

More concretely, if price goes up, what does this cause? Most economics-101 people would say that rising price brings in sellers (supply). But that's only completely true in markets for consumable commodities. In speculative trading markets, a rising price could also bring in buying from the "trend is your friend" crowd. So we always have two competing groups; trend followers and contrarians (value investors).

A price rise causes demand from trend followers and supply from contrarians.

A price decline causes supply from trend followers and demand from contrarians.

The question is... who's got the most clout at any given moment.
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #520  
Old Sep 6, 2009 6:36pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by pipmutt View Post
Bid at 0, what's to sell, it's a giveaway

Yeah I thought of that when I was writing it too.

But anyway, I'm off to my excel spreadsheets to do some modeling of price behavior based on some of the ideas here...
__________________
My 10-year Carry Trade Plan
Reply With Quote
  #543  
Old Sep 8, 2009 7:32pm
capitalist88's Avatar
Math Geek in Training
 
Member Since Oct 2006
More than 10 Vouchers  896 Posts
Default

Quote:
Originally Posted by jpat1023 View Post
So I placed a limit sell (that's what my broker calls it, I personally think it should be called a sell stop, but that's another debate) at 1.45197, to be exact.
Using the standardized terminology of the securities markets, your broker would be correct. Just remember "Slobs Bless":

SLoBS
------------current market price
BLeSS

Sell limits and buy stops are placed above the current price while buy limits and sell stops are placed at lower prices.

MY broker (Oanda) on the other hand calls everything a limit order, LOL.
__________________
My 10-year Carry Trade Plan
Reply With Quote
Reply

3 Traders Viewing This Thread (2 are members)
withnail, InvisibleMore than 10 Vouchers
Thread Tools


Similar Threads
Thread Thread Starter Forum Replies Last Post
Using future orderflow, to predict spot prices woo Trading Discussion 16 Jul 2, 2012 3:14pm
Vidas - Orderflow Nritv Trading Journals 1 Feb 10, 2011 1:07pm
Help.. Pending stop order when market price and Open price between broker requirement dewaforex Platform Tech 5 Apr 5, 2010 5:32am