Hi DerekL.
You should also be concerned about 'long' orders as well. Same rules apply.
CRB will give you a guaranteed stop at the price you specify. You pay a bit more in the spread to cover for the privilege. An extra 4 points I think. On top of the quoted spread.
A stop order will get filled, but if the market is suddenly going like an express train, it may well be past where you placed the order, so you could be a further 30/40 etc away.
If other orders are ahead of you in the queue, you just have to wait your turn until you are next up.
Personally, I have never encountered any problems with a stop being filled away from where I placed it. Others on here can tell you a few horror stories though.
It has in the past, worked in my favour on occasion where the market has traded past the stop, reversed and carried on in the desired direction, leaving the stop intact. Luck of the draw I guess.
Rogue orders? Depends which side of the trade you are on when these things happen. If the wrong side of it, your stops get hit and you end up flat. The market will generally correct itself in due course and end up in the same place before the spike. So if you are eod trading you will lose out both ways as you lose out on the profit sitting on the table.
The sb's will not filter out these trades. Why should they? If they did they would be guilty of more manipulation then they already are. It will work both for and against them.
What will happen though is if a run starts suddenly and you grab the coat tails, you could well find that the trade is void. This happened a few months back. The big boys got caught out by a massive spike in the market so they voided all trades from a certain time. Had you got the order in 30 secs earlier you were laughing. Changing the rules to suit, moving the goalposts? Oh yeah. Would it have happened if the big players had been the correct side of it? All down to being in the right place etc. This was on ACE by the way. The sb's just voided the spike, don't know from where though. In any case if you try to put a trade on, or even worse try to exit a trade when these runs are going, you could well have a great deal of trouble getting through and getting filled.
"Is there a problem with rouge orders that could wipe me out so that I have to sell my house? "
Well, first off. Don't have a credit account. Being new to trading don't trade with any size. In fact use the least amount possible. £1 at a time. You don't know yet if you are suited to trading. When a trade goes against you the first couple of times, you will start to find out a lot about yourself that you never realized was inside. In fact don't trade until you fully understand the rules (and then be adaptable). It is not an easy way to make money.
