Wednesday, June 16, 2010

Small Day Trade

Here is the point.  

The STD choice on execution of a stop price is set by TOS as the “Mark”, usually the Mark is about the average price on say an option.   But on futures, the mark is spaced one unit apart, for ES that is 0.25, and the Mark will flip flop between the two.

This give your friendly broker the right to “take your stop out” with much more discretion on their own….and that isn’t good for you.

When setting a stop, on a short order, I set it to execute only on a  sufficiently high bid.   This removes one of the shenanigan they can play to take your money.


  1. steve, love the disqus. great advice about the stop order.

    --the commenter formerly known as John M

  2. Looks like the Euro may be resuming its dirt nap. The ROC just dropped below, backtested and resumed down. Adding NQ shorts.


Insightful and Useful Comment!