Note: traders have 2 methods of putting out stop orders...
Laser has just implemented the new OMS system. This is a advanced order management system that is used to place software held stop orders. These stop orders can be routed to any ECN or exchange and offers the users versatility of price sensitivy and speed of execution.
click on the image to enlarge.
STEP 1: Go to MODULES - > OMS to open up the window. Notice if you load cygroup_medium.lay it is already opened. You can locate it by going to Window menu and selecting OMS.
STEP 2: Notice you have few buttons to choose from including PLAY, STOP,
ADD ORDER, MODIFY, and PROPERTY.
STEP 3: Click on ADD ORDER
notice ADD ORDER window will open.
STEP 4: Input the parameters, an example is below...
Buy/Sell: Select BUY
Price Indicator: Stop
STEP 5: Click on OK.
notice your new STOP order is listed as an order.
STEP 6: Click on PLAY to activate the listed orders. Click on STOP to deactivate.
notice the options that come up when you right click on the order.
STEP 7: To delete an open order, right click on the order and select DELETE.
STEP 8: You MUST customize which ecns to send the STOP orders. Please click on PROPERTY button on the right. MAKE SURE ITS ON ISLD/NASDAQ.
notice the Property box pops up where you can customize the Routing Method.
STEP 9: Click on the Methods tab to bring up the window shown above.
STEP 10: Use the pulldown menu to select a different ECN. By default please use ISLD/NASDAQ only.
A stop order is designed to protect a profit or guard against loss. Although it does not work well in all conditions, it can be an effective protective strategy in certain situations. When placing a stop order, you specify a stop price that, when reached, converts your order to a market order. For example, you may have purchased a stock at $30 and it is now trading at $50. If it drops to $40, you want to sell the stock. You can place a sell stop order at $40, and if the stock trades there or below, your order becomes a market order to sell. The risk with this type of order is that once triggered, your order can be filled at any price above or below your stop price. For example, if a stop order is in place before the market opens, and the stock opens at $20, your order will be triggered and may be executed far below your original stop price.
*Stop Limit Order
A stop limit order is a variation on the stop order. It works in a similar fashion in that it is triggered once the stock hits the stop price. But instead of becoming a market order, it becomes a limit order at a price that you specify. For example, you want to limit losses on a stock that you purchased at $50, you enter a sell stop limit order at "$40 Stop $39 Limit." Once the stock trades at $40 or below, your order becomes a limit order to sell at $39. This will ensure that you do not sell at an extremely low price if a stock opens drastically lower. In this example, if the stock drops down at any price below your $39 limit, you will not sell the stock.
Traders still have the option to use STOPS thru EDGX ECN. This means stop orders will be held on the ECN servers and is not software based. In your level 2 execution box, make ROUTE = EDGX. This will bring up STOP PRICE and TYPE windows.
notice under the route menu you can select EDGX, the old STOP route does not work anymore
Here you will see a new pulldown menu for PRICE, TYPE, and STOP PRICE.
* Price = Limit price for LIMIT STOP orders
* Type = STOP (market) or STOPL (limit)
* Stop Price = Price in which the stop order will be triggered
notice under type you have a choice between STOP and STOPL
Step 1: Make route equal to EDGX.
Step 2: Select Type to be either STOP or STOPL.
Step 3: Change the stop price (and stop limit price if needed).
Step 4: Select the number of shares.
Step 5: Click either Buy / Sell / Short.
Rules for AUTO Stops
1. Search the third market for liquidity before posting the
order on AMEX.
2. NYSE stops are routed to the exchanges
3. Listed stocks are triggered by a print on the primary exchange, OTC
triggerd by Bid/Ask on the primary.