Question about limit orders with brokers | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Buy Stop Limit and Sell Stop Limit Orders on MT4 6 replies

Brokers with 'real limit orders' and less than $10k deposit 4 replies

Question on limit orders and spreads 3 replies

NFA Rule "No Stop/Limit Orders" Not for all US Brokers 8 replies

Question about EFX limit orders 37 replies

Question about limit orders with brokers

  • #1
  • First Post: Feb 15, 2009 1:16pm Feb 15, 2009 1:16pm
Hello,
I have a question about Forex Brokers (exactly GFT UK, but maybe the answer will be correct for all brokres):
When I have a Limit order, and a there is a gap, will it be filled at the price I have set, or the price that happened after the gap? For example - the GBPUSD price is 1.3000, and I put a buy limit order at 1.4000. There is a gap and the next price is 1.5000 . Will it be filled on 1.4000 or 1.5000?

And what with Stop orders?

Thanks in advance,
Julek
  • #2
  • Feb 15, 2009 1:21pm Feb 15, 2009 1:21pm
I doubt you'd get filled at all since price never hit your area but gapped completely over it. Now if you had a position and the gap jumped your stop the trade would likely stay live unless it ate up too much of your margin, then they will close you at the best available price which usually equals the worst price for you.
  • #3
  • Feb 15, 2009 4:58pm Feb 15, 2009 4:58pm
And what with Limit orders?
  • #4
  • Feb 16, 2009 3:41am Feb 16, 2009 3:41am
for sure u'll get filled at a worse price. limit orders may or may not get filled, depending on the price action/trend.
  • #5
  • Feb 16, 2009 5:35am Feb 16, 2009 5:35am
So I saved 130 pips at Saturday by canceling a buy Limit order on cable (huge gap)...
  • #6
  • Feb 16, 2009 6:21am Feb 16, 2009 6:21am
Julek, this is a good question for your particular broker. Due diligence says you should mail 'em and ask that question.
Traderjai said that if a Stop got gapped, it would stay alive. I don't think my broker would do that. Mine would be filled at the first available price at or beyond my stop.
Some brokers have "bounds" that you can set so that your entry order gets filled within a few pips or not at all. Mine does.
Ask your broker.
  • #7
  • Feb 16, 2009 7:28am Feb 16, 2009 7:28am
I use GFT. From what I know, if you place a "pending order" over the weekend, that order will be filled at the Opening Price on Sunday.
Quote
For Example
So, if you think the price will gap up over the weekend and you set your stop/limit pending order at 1.4000. If Sunday's opening gap price is 1.5000, GFT will fill your pending order at 1.5000. NOT on your pending order of 1.4000
It seems, they will not allow you to profit/loss off the weekend gap, using "pending order" placed over the weekend. Now, if you had an "Open Order" on Friday, and left it open over the weekend, you could profit/loss off of the weekend pricing gap.
  • #8
  • Feb 16, 2009 7:49am Feb 16, 2009 7:49am
Quoting Jhig
I use GFT. From what I know, if you place a "pending order" over the weekend, that order will be filled at the Opening Price on Sunday.

It seems, they will not allow you to profit/loss off the weekend gap, using "pending order" placed over the weekend. Now, if you had an "Open Order" on Friday, and left it open over the weekend, you could profit/loss off of the weekend pricing gap.
Thanks! I talked to someone else, and he said that his broker has different rules - you cannot change orders during the weekend and Limits and Stops always are filled at exactly the price that I enetered in the order.
So it depends on the broker.
  • #9
  • Feb 17, 2009 6:31am Feb 17, 2009 6:31am
What about stop orders? supposedly you could place them on friday before closing, and if there is a gap on monday you should be filled at the stop order price and profit from the gap. It works on demo.

Now my question is, would it work Live? with an ECN broker? with a regular MM broker such as Alpari? I'm referring solely to MT4 platform, but if anyone has got success with other platform please inform!!

thanks,
Luis
  • #10
  • Feb 17, 2009 12:51pm Feb 17, 2009 12:51pm
I have an idea how to "hack" a broker, if he closes Stop offers at exactly the price I set in the order:
If you have 2 accounts, on one of them create a buy market order just before the markets close and put a small (10 pips stop loss) - that it will not be filled before the markets start working again.
On the second account do the same, but with sell order.
If there will be a big gap, on one account there will be one losing trade (only 10 pips lost), and on the second, you will have a winning trade
  • #11
  • Feb 17, 2009 11:19pm Feb 17, 2009 11:19pm
First know some brokers call a market-if-touched order a limit order. If you mean a true limit order and have a buy limit at 1.5000, market closed Friday at 1.4500 and opened Sunday at 1.5500, you will not have a fill at any price. If you have a sell limit at 1.5000, market closed Friday at 1.4500 and opened Sunday at 1.5500 your fill will be 1.5500. Of course the shop that your trading with could open at 1.5000, fill you and then run it up to 15500 all in a matter of a couple of seconds.

There are some if's and could's but it kind of covers it all.

BR
  • #12
  • Feb 18, 2009 4:00am Feb 18, 2009 4:00am
Quoting Julek
I have an idea how to "hack" a broker, if he closes Stop offers at exactly the price I set in the order:
If you have 2 accounts, on one of them create a buy market order just before the markets close and put a small (10 pips stop loss) - that it will not be filled before the markets start working again.
On the second account do the same, but with sell order.
If there will be a big gap, on one account there will be one losing trade (only 10 pips lost), and on the second, you will have a winning trade
you don't need two accounts, just open a buy stop a little above and a sell stop a little below. When monday begins, immediatly close both trades, and if it happened to gap, you will profit from that.
  • #13
  • Edited 8:29am Feb 18, 2009 8:26am | Edited 8:29am
If there is a gap with a stop order.... buy stop @ 1.5000 and the market closed at 1.4990 then gaps open to 1.5500, your fill is going to be 1.5500.

A stop order means that once your price is reached, it becomes a market order. If the first price traded is 500 pips away from the previous close. That is going to be your fill.

BR

P.S. and it is limited to the available liquidity at that price. If your order is greater than what is available, then the fill price will be higher yet. Now add no regulation or oversite.
  • #14
  • Feb 19, 2009 8:30am Feb 19, 2009 8:30am
Quoting Big1red9
If there is a gap with a stop order.... buy stop @ 1.5000 and the market closed at 1.4990 then gaps open to 1.5500, your fill is going to be 1.5500.

A stop order means that once your price is reached, it becomes a market order. If the first price traded is 500 pips away from the previous close. That is going to be your fill.

BR

P.S. and it is limited to the available liquidity at that price. If your order is greater than what is available, then the fill price will be higher yet. Now add no regulation or oversite.
sheesh that sucks then... how come it works in demo?
  • #15
  • Feb 20, 2009 7:01am Feb 20, 2009 7:01am
Quoting Proupin
sheesh that sucks then... how come it works in demo?
No idea, I would talk with the broker that your using the demo on. Maybe your being put into the positions on Friday (market close) rather than Sunday(market open)? Maybe the demo does not mirror reality? Maybe what they call a stop isn't one?
  • #16
  • Feb 22, 2009 2:23pm Feb 22, 2009 2:23pm
I asked a few brokers about this and they all say that the trade will be filled at the next available price if it gapped through the stop order... so demos in this case wouldn't mirror reality, and the strategy I mentioned would not work.

Quoting Big1red9
No idea, I would talk with the broker that your using the demo on. Maybe your being put into the positions on Friday (market close) rather than Sunday(market open)? Maybe the demo does not mirror reality? Maybe what they call a stop isn't one?
  • #17
  • Feb 23, 2009 12:50am Feb 23, 2009 12:50am
Limits guarantee price not execution.

Stops guarantee execution not price.

Simple as that.

so if you want the best price use limits only.
"Diversification is an excuse for a lack of talent" ~FXC
  • #18
  • Feb 23, 2009 5:14am Feb 23, 2009 5:14am
Oh I see, could you make an example where one could exploit (Live) a weekend gap straddle? Although what you imply is that if price gapped through a Limit order, it would not get filled at all (price guaranteed but not execution)

Quoting FXCapitalist
Limits guarantee price not execution.

Stops guarantee execution not price.

Simple as that.

so if you want the best price use limits only.
  • #19
  • Feb 23, 2009 7:53am Feb 23, 2009 7:53am
Not true in forex. What is called a limit with some brokers is a MIT.

Quoting FXCapitalist
Limits guarantee price not execution.

Stops guarantee execution not price.

Simple as that.

so if you want the best price use limits only.
  • #20
  • Feb 23, 2009 10:19pm Feb 23, 2009 10:19pm
Quoting Proupin
Oh I see, could you make an example where one could exploit (Live) a weekend gap straddle? Although what you imply is that if price gapped through a Limit order, it would not get filled at all (price guaranteed but not execution)
no it wouldnt get filled but the order should be active and wont get filled until price reaches the level of your limit or better, or won't get filled at all.
"Diversification is an excuse for a lack of talent" ~FXC
0 traders viewing now