Question on NT ATM and slipage

[Perigrine]

Can anyone tell me how NinjaTrader and the broker / market works in the following scenario?

I place an ATM order to buy 2 contracts long at 10900 (Qty:2 Stop Loss:10 Profit target: 50), the market is at 10890 when I click to place the limit order.

Suddenly there is some panic issue and the price leaps to 10940 in one second, I get bought, within that time "somewhere'. Then just as suddenly the price drops to 10850.

My question is; normally my stop would be hit and I would close position at 10890, or 10889 in normal market conditions, what would the worst case close be in this scenario and how does it occur?

Assuming the answer is a lot lower, is there any way to reduce this risk?

Thanks

[NinjaTrader_Jason]

Hello Perigrine,

Please note that if you submit a buy limit order at 10900 while the market trades at 10890, your buy limit order will fill right away. Likely it will fill at 10890 - if you submit buy limit orders above the current market price, the limit order will execute right away at the price the market is trading.

Unfortunately slippage can occur especially during high volatile periods. It is important to know what type of order is used for your stop loss order. You can use a stop market or stop limit order. This can be defined in the SuperDOM properties menu by 'Use stop market for stop loss orders'. If you submit a stop limit order as stop loss, it will be submitted by an offset of 20 ticks which cannot be changed. This is to ensure the order will fill and avoid the market trading through the order.

In addition, please see the link below for more information regarding the risks of electronic trading.

http://www.ninjatrader-support.com/HelpGuideV6/RisksOfElectronicTradingWithNinjaTrader.html