Question on StopLimit type orders

[Burga1]

Hi,

I'm trying to better understand "StopLimit" orders. In the Help section for the "EnterShortStopLimit" it states the following:

EnterShortStopLimit(int quantity, double limitPrice, double stopPrice,string signalName)

signalName = User defined signal name identifying the order generated.
limitPrice = The limit price of the order.
stopPrice = The limit price of the order.
quantity = Entry order quantity.

My question: What is the difference between "limitPrice" and "StopPrice", they seem to be the same thing? Thank you.

[NinjaTrader_JoshP]

Please see this tip: http://www.ninjatrader-support.com/v...ead.php?t=3271

[Burga1]

Yes, thanks I'm aware of that. It really doesn't differentiate for me what the differences in those two parameters are...

[NinjaTrader_JoshP]

"Like a stop order, the stop-limit order waits until the specified stop price has been reached. Unlike the stop order though, the stop-limit order becomes a limit order instead of a market order when the stop price is reached. The drawback for a stop-limit order is the same as all limit orders; the trader might not be filled if the limit price is never reached."

The stop price is the stop order and the limit price is the limit order.

[Burga1]

So for example if I wanted to enter a short position using this command with a price 3 pips away from a current price level, and the current price level is 1.4735, I would do this(?):

value1 = 1.4732;
value2 = 1.4732;

EnterShortStopLimit(1, value1, value2, "Entry Point");

value1 is the price I want the limit made at, value2 is the price I want "past" before initiating the order -- so they would be the same, correct?...

[NinjaTrader_JoshP]

For the way you are designing your order, yes.

[Burga1]

Thank you. Why did NT give me an error message something to the effect of "Stop limit orders are not supported on currencies..."??

[NinjaTrader_JoshP]

Considering the error I would assume that order type isn't supported then.

[KBJ]

From reading up on the descriptions of the types of orders that can be placed - http://en.wikipedia.org/wiki/Order_(exchange) - I'd suspect that this is a type of order that's only available for stocks and futures - or at least it's not supported by Gain Capital.

But if you're setting the stop and limit prices the same, why not just do an EnterLongLimit?

[Pete S]

KBJ -- that would be totally different behavior. If the price is currently 50, and you set an EnterLongStop at 60, you will not go long until (if) the price hits 60. If you do an EnterLongLimit, you'll fill right away somewhere between 50 and 60 (i.e. I'm willing to pay up to 60).

[KBJ]

Pete: You're right it is a different behavior. However, in this case (as you point out) it does get one a better price.

Burga1: Out of curiosity, was this a somewhat hypothetical question, or is there a reason for deciding to go short, but wanting to get a guaranteed worse price than is currently available?

[Burga1]

Actually yes, I don't want a "better" price--that is a relative term. What I want is for the price to fill at the level I have the strategy calculating (2 pips below the low for shorts, 2 pips above the high for longs...). Basically what I want is a "Market-if-touched" order...

As far as the reason is concerned, I've determined previously (using another application) that for these particular strategies in question the price NEEDS to be at this "2 pip offset" level. If the strategy were to enter at a "better" (less than 2 pips) price they will VERY often result in losing trades...thus my goal is to simply not enter the trade if that "2 pip offset" level is not reached. This is something that I'm finding is becoming an unexpectedly large problem for me within NT.

[NinjaTrader_JoshP]

Burga1,

I am looking at GAIN's supported order types and it does appear that they do not support Stop-Limit orders. Don't quote me on that. I am not certain since I do not have a GAIN account to truly check with though. Unfortunately NT does not have a "Market-if-touched" order type.

[Burga1]

Hmm...thanks for the post. If NT doesn't support "if touched" orders and Gain doesn't support StopLimit orders (and Gain is the only available broker for forex within NT)...then it appears I may have a bit of a problem...

[NinjaTrader_JoshP]

I am trying to confirm this for you. Will let you know if what I said has merit or not.