Limit orders not being executed at limit

[Marzullo]

I don't really understand, why can't I trade within the spread?

I mean, if I place a sell limit order, shouldn't I be executed as soon as the ask goes above/egual my limit order? vice versa for buy at limit, I'd find logic to be executed as soon as the bid goes egual or below my limit buy...

This way how could be possible to trade the spread?
I tried this with Sim101 account and it doesn't work.

Thanks.

[NinjaTrader_RJ]

Hello,

Thank you for your note.

Just to clarify, a BUY limit must be placed BELOW the last traded price and visa versa for a SELL limit.

Is this what you are trying to do?

If so, are there any errors?

Can you explain what you mean by "doesn't work?"

[Marzullo]

Well, I have made an indicator that prints bid, ask, last traded.
I thought a sell limit order would be executed as soon as the red line goes
above it (and of course when I place the sell limit, it's initially above the red line), doesn't seem to work.
I thought a buy limit order would be executed as soon as the green line goes below it (and of course when I place the buy limit, it's initially below the green line), and this happens correctly.

Seems spread cannot be traded on forex... or is it related to ninjiatrader?

[NinjaTrader_RJ]

Can you check your log tab in the Control Center for any errors indicating why this order was not placed?

-Does the pending order show up?

-What happens as price approaches it?

[Marzullo]

Example.

Can you check your log tab in the Control Center for any errors indicating why this order was not placed?

-Does the pending order show up?

-What happens as price approaches it?

Yes it shows up.
I just clicked sell ask to place the sell limit order.
Example of sell limit order not yet executed when red line goes above it...
It is executed only when the bid touches the sell limit order...
I don't understand this, I am a seasoned stock trader, but on forex things seem different.

Seems you always have to pay the spread, you cannot trade it, but it's strange because some brokers, like the one I am demoing with says it's possible to trade within the spread...

[NinjaTrader_Ray]

FX charts are based on "Bid" price since in general, FX does not have a last traded price such as stocks or futures. This is since most FX brokers don't publish trades, just bid/ask price. Thus, in NT, we take the bid price from an FX feed and feed it into our last traded price to drive charts and other items such as our simulator. This is why your sell limit orders are triggered from the bid price.

[Marzullo]

FX charts are based on "Bid" price since in general, FX does not have a last traded price such as stocks or futures. This is since most FX brokers don't publish trades, just bid/ask price. Thus, in NT, we take the bid price from an FX feed and feed it into our last traded price to drive charts and other items such as our simulator. This is why your sell limit orders are triggered from the bid price.

Yeah I see, NT works correctly.
Sounds like on a real live connection this would behave somehow as I expected, I don't have much experience with forex so I don't know how I'd be executed in those cases, I turned the question to the broker referencing this thread.

Thanks for help.

[michael fantoni]

Hi there

I wonder: why can I not place a Buy Limit Order below market? And similarly for Sell Limit Order above market? Does everyone do it? With the demo, these past days, every time I try to put a Limit Order most of the times I get hit regardless of where the market is and regardless of where the Limit Order is set at.

Regards

[NinjaTrader_CalebS]

Michael,

As a test, can you please place a buy limit order 10 ticks below the market price on your SuperDOM by left clicking the price ladder on the lower left and let me know how it behaves?

[michael fantoni]

Yes, I tried to use the SDOM as well. Still, the order just gets hit. I dont understand. Im doing the EUR/USD

[michael fantoni]

and that was the reply to what I did when I was battling with orders. I just did it again with SDOM and from Orders and it works. What caused to behave like this earlier?

[michael fantoni]

That was one off. It still does. I just entered a Limit Order from SDOM @ 1.4417 and the market is @ 1.4408 and I got hit. EUR/USD

[NinjaTrader_CalebS]

Michael,

Did you use a buy limit order or a sell limit order? Could you post a screenshot of your Orders Tab so I can see the order you made?


To send a screenshot press Alt + PRINT SCREEN to take a screen shot of the selected window. Then go to Start--> Accessories--> Paint, and press CRTL + V to paste the image. Lastly, save as a jpeg file and send the file as an attachment.

For detailed instructions please visit the following link

http://take-a-screenshot.org/

[michael fantoni]

Thank you for your patience. Im new at trading and maybe everything is obvious to you and things are as they should be. I attached the screenshot. You can see the trades I cancelled, the ones which were hit far away from the target.

Regards

[NinjaTrader_CalebS]

Michael,

Thank you for the screenshot. It appears that you placed a buy limit order at 1.4416. A limit order is to be filled "at that price or better" so since 1.4411 was a better price, you were immediately filled there. If you wanted the market to rise up to your entry point on a buy, you would need to place a buy stop market/limit order, which can be placed on the DOM by clicking the middle mouse wheel. Here is an in-depth guide including video that explains how order types and the DOMs work:

http://www.ninjatrader.com/support/helpGuides/nt7/superdom.htm

I would also like to invite you to our SuperDOM Basics webinar on Aug 29th at 4:15 PM EDT at this link: http://www.ninjatrader.com/webinars.php