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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: wlcnyc who wrote (4917)	1/18/1999 9:04:00 AM
From: snerd	Respond to of 56535

Bill... Stop loss... I use them all the time with Waterhouse. But I too think I read somewhere that NAS doesn't allow them, so maybe brokers just use the stop as your reference point to exit, and try to get the best price for you. Not sure. Snerd

To: wlcnyc who wrote (4917)	1/18/1999 9:06:00 AM
From: Tony B	Read Replies (2) \| Respond to of 56535

wlcnyc - stop losses - Here's the answer -> cis.ohio-state.edu "Note that the NASDAQ does not officially accept stop loss orders since each market maker sets his own prices. Which of the several market makers would get to apply the stop loss? However, many brokers will simulate stop-loss orders on their own internal systems, often in conjunction with their own market makers. Their internal computers follow one or perhaps several market makers and if one of them quotes a bid which trips the simulated stop order, the broker will enter a real order (perhaps with a limit - NASDAQ does recognize limits) with that market maker. Of course by that time the price might have fallen, and if there was a limit it might not get filled. All these simulated stop orders are doing is pretending they are entering real stops (these are not official stop loss orders in the sense that a stock exchange stop order is), and some brokers who work for the firms that offer this service might not even understand the simulation issue." llater, Tony B