Based on what I've seen on the simulator, I am assuming that buy stop market orders entered below the current market will be immediately submitted as buy market orders. And sell stop market orders entered above the current market will be immediately submitted as sell market orders. In other words, they get converted to regular market orders instead of being rejected.
Here's an example:
Let's say that the current market is 11x12 (bid=11, ask=12). On the simulator, if I send a buy stop market order at a price of 9 (i.e., below the current market), the order immediately gets submitted as a regular buy market order (instead of being rejected). The NT simulator says that I am filled at a price of 12 (the current ask price).
Is this behavior correct? Will NT process these orders (stop market orders) the same way in live trading as it does on the simulator?
By the way, I'm not sure if this matters, but I was testing this using markets on the CME. Is this an exchange dependent issue?
Thanks!
Here's an example:
Let's say that the current market is 11x12 (bid=11, ask=12). On the simulator, if I send a buy stop market order at a price of 9 (i.e., below the current market), the order immediately gets submitted as a regular buy market order (instead of being rejected). The NT simulator says that I am filled at a price of 12 (the current ask price).
Is this behavior correct? Will NT process these orders (stop market orders) the same way in live trading as it does on the simulator?
By the way, I'm not sure if this matters, but I was testing this using markets on the CME. Is this an exchange dependent issue?
Thanks!
