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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: rocklobster who wrote (2321)	1/16/2002 6:41:28 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 12411

I disagree with Michael's assessment that it was my poor choice of trade execution that led to this loss. No problem, we can agree to disagree, but be aware that the same result can happen to you regardless of broker and regardless of how Stop / Stop Limit orders are handled. Even assuming the best case scenario - your order is live on the CME directly - if you are 'late in the line up' with your stop order you still stand a chance of being filled (or not at all) at much higher prices. As others have mentioned, its not like anyone is mandated to fill you near your stop. Once its a live order, it is subject to the will of the market. Such is Globex. Same can happen elsewhere. I have heard privately by email from a futures trader that told me that somebody hit a buy the book feature on the globex nq contract and accidentally cleared out the entire nq book at that time.. appparently they got stuck with 1850 contracts and ended up having to dump them and took a huge loss. Interesting. Add to this the fact that I also heard that on the larger NDX contract...CBOE busted all trades over 1639 and you add a dimension to the situation that further illustrates the failure of the system.. To bust trades for people trading the larger NDX contracts and not do the same for the people trading the smaller NQ contracts is just plain wrong in my opinion. This situation reaks to high heaven in my opinion but at least I have learned about a fatal flaw in the system that can cost me serious money.. Have to agree with you that if they busted trades on the big one, you have to wonder why they did not on the small contract. I'm actually looking into trading the larger NDX contracts as I have been trading large numbers of NQ contracts and would rather just be trading the larger contracts.. More than likely you will experience slippage over your lifetime of trading big contracts that exceeds by far the 40 points lost this week. The big contracts are not without their disadvantages and I urge you to check into them carefully...