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X_TRADER®

Triggered Stop Orders

You are viewing X_TRADER Version 7.17 and higher. For earlier versions, click here

A Stop is an order that is triggered when the market has reached or penetrated a specified price in the market. Stop triggers are typically set worse than current market prices. This means:

  • Buy Stops are placed above the current last traded price.
  • Sell Stops are placed below the current last traded price.

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Triggered native stops can be priced as Limit orders with a fixed price or Market orders.The Override Native checkbox found in the Advanced section of the Order Pane lets you send natively supported stop orders to the Synthetic SE instead of directly to the exchange.

Example

The following screen shots illustrate a synthetic Stop order with a trigger price of 143125 based upon the ask price. Once triggered, the Synthetic SE submits a child order to the market. The Order Pane example on the left submits a child older priced relative to the Ask price minus one tick. The example on the right submits a child order with a fixed price entered manually in the main Price field of the Order Pane.

The TTStatus field displays the relative priced Stop (i.e., Ask minus one tick) in the Pending Trigger state. During this time, the Synthetic SE continuously monitors the order for the trigger condition(s). The quantity displays in the Undisclosed Quantity (Und Qty) column because it is not actually included in the exposed depth of the market.

Relative Priced Stop in the Orders and Fills Window

The Audit Trail window summarizes the synthetic order parameters.

Audit Trail Message

Stop Trigger Rules

If the order server goes down, or the trader who originates the Stop order is not logged in when the order triggers, the order is sent to market with the Trader ID of another trader with the same Group ID. Held Stop orders do not trigger until the original trader or a trader with the same Group ID resubmits it.

A stop limit order is accepted when the limit price meets these criteria:

  • Trigger price<= Best Ask price, for a Sell Stop Limit
  • Trigger price>=Best Bid price, for a Buy Stop Limit
  • Trigger price<= Limit price, for a Buy Stop Limit
  • Trigger price>= Limit price, for a Sell Stop Limit

A stop limit or market order is triggered only if the last traded price is within the trigger range. The trigger conditions are:

  • Last Traded price<= Trigger price, for a Sell Stop order
  • Last Traded price>= Trigger price, for a Buy Stop order

Stop orders in place for the same product at the same trigger price (for the same trader or multiple traders), process in a FIFO (first in, first out) order.

Note: You can also enter Stops using MD Trader . A red a circle with a slash through it appears if you try to enter an invalid price level.

Placing Stop Orders using the Market Window

To place a Stop order...

  1. Click in the appropriate expiration/strike row on the bid or ask side of the Market Grid to seed the Order Pane with a contract.

  2. Set the order quantity.
  3. Configure routing using the Routing Configuration dialog.

    Note: You can setup routing rules and customer profiles, or use the <Default> profile. Refer to Creating a Customer Defaults Profile

  4. Select Stop from the Modifiers list.

    The Trigger Price field appears.

  5. Set the Trigger Price. Use the arrows or type the trigger price.

    Note: If you want a natively supported order to be managed by the Synthetic Strategy Engine, click Override Native.

  6. Select the Price Type used to evaluate the trigger.

    Note: Refer to Price Type if you would like to explore this topic in greater detail.

  7. If desired, set a secondary trigger based upon executed quantity (if LTP) or the quantity on the Bid or the Ask.

    Toggle the Qty button if you would like to set the secondary trigger as either a quantity or a percentage.

  8. Use the Price Mode section to set how to price the child order that will be submitted to the market when the Stop is triggered.

    Note: Refer to Price Mode if you would like to explore this topic in greater detail.

  9. Click Buy or Sell once you have entered the desired order parameters to submit the order.

Placing Stop Orders using MD Trader

To place a Stop order...

  1. Configure Stop order parameters.

    • Create an Order Template using the Order Defaults window.

      - or -

    • Enable Stop Market and/or Stop Limit in the Enable Order Types section on the MD Properties | MD Trading tab.

      Note: If desired, assign the order template/order type to an order button on the MD Trading tab.

  2. From MD Trader, select the Stop order configuration.

    • Click the assigned Order Button.

      - or -

    • Select the Stop configuration in the Order Type drop-down list.

  3. Configuration routing using the Routing Configuration dialog.

    Note: You can setup routing rules and customer profiles, or use the <Default> profile. Refer to Creating a Customer Defaults Profile

  4. Set the desired quantity.

  5. Click the Buy or Sell column at the price level where you would like to set the Trigger Price.

    This displays an undisclosed order in the Working Orders column adjacent to the price..

    Note: A red a circle with a slash through it appears if you try to enter an invalid price level.