CME Stop placement rules

[ScottB]

Hi,

It may be of interest to those who do not already know that CME stop placement rules will cause a rejected order - Order Type Not Allowed if you hit or cross the market with your stop order.

I have verified this with the CME trade group and thought I would pass it on. Where this becomes important is if you were attempting to move a stop to breakeven (especially algorithmically via a calculation) and price moves prior to your order reaching the CME matching engine.

I have tested this is simulation mode and it does not appear NinjaTrader enforces the rule. There may be a setting for this and I do know you can write a custom fill routine to enforce it yourself.

I just thought I would pass this on.

[NinjaTrader_Matthew]

Thanks for sharing your experience with these items on our forums.

[ScottB]

Matthew, you are quite welcome; my pleasure.

I have been discussing the difference in resources of the average retail trader and the average institutional/professional trader (I am on the institutional side) with some colleagues and found that this type of information is one of the key differences.