Order priority

[superfrank]

Hello everyone,

I'm new to futures trading, so I apologise in advance if I use any incorrect terminology. I have question for more experienced people...

When placing limit orders are they placed in a queue with the priority being decided by the time those orders were placed, and nothing else? i.e. first in first out.

It feels like my order is always shuffled to the back of the queue, and that I only get filled when the price goes through it.

I asked the broker and they said it was first in first out, but it doesn't feel like it!

 

[MrGecko]

It depends on the exchange. Go to the exchange website and search for the "matching algorithm".

 

[MarketMoverTrader]

Which broker? I ask because, for example, my broker is underwritten by RSG Group, so my orders go 'the long way round' to reach the market, which results in big slippage. The broker I'm moving to has their orders go directly to the CME, and apprently the slippage is much much less. I hear this directly from a few people who moved from my current broker to the other one, so I trust their claims. The better one is Infinity Futures.

 

[superfrank]

Which broker? I ask because, for example, my broker is underwritten by RSG Group, so my orders go 'the long way round' to reach the market, which results in big slippage. The broker I'm moving to has their orders go directly to the CME, and apprently the slippage is much much less. I hear this directly from a few people who moved from my current broker to the other one, so I trust their claims. The better one is Infinity Futures.

I'm using Mirus Futures with Dorman Trading. I've been impressed with everything else so far. Trading FDAX.

 

[MarketMoverTrader]

I'm not familiar with them. I'm happy with my current broker mostly as well, except for this problem, which causes me to miss a few trades that usually turn out that they would have been winners.

 

[arabianights]

indeed doesn't even depend on exchange, but also on product.

I would say if the order book is thin enuff then FIFO is reasonable assumption... otherwise all kinds of exciting algorithms may happen!

 

[wackypete2]

Hello everyone,

I'm new to futures trading, so I apologise in advance if I use any incorrect terminology. I have question for more experienced people...

When placing limit orders are they placed in a queue with the priority being decided by the time those orders were placed, and nothing else? i.e. first in first out.

It feels like my order is always shuffled to the back of the queue, and that I only get filled when the price goes through it.

I asked the broker and they said it was first in first out, but it doesn't feel like it!

If it sounds like the game isn't fair, well..it isn't. The game is skewed heavily against the retail trader...one reason why so many lose. The exchange allows you to play their game, their rules, like it or not.

Peter

 

[EmotionIsTheBigEvel]

I am trading the ES with Infinity and I see it happen too.

What I see is that my trade is in and there is an size at ask price lets say 1200 cars then it is traded till there are 300 cars left, then there is added to the price and it says 1600 cars. I then see the numbers drop to 500 cars and my contract is still not traded! You would say the 300 cars left would be the first being trade?!?

Two possibilities first in first out is not being used on the Globex OR someone cancels a lot of cars?!?

I see this situation occur very very often...

 

[gc1]

You have to remember that the big firms which are making a continous two way price quote aren't just offering one price and bidding one price they have a whole series of offer and bid prices.

Then, when they move their price, they just lift their inside bid or inside offer and their next best bid or offer become their current bid or offer. That order will usually have been put into the system many seconds or possibly many minutes before your order.

If you want to be at or near the front of the queue you need to enter your limit order when the market is trading many points away from your limit price.

 

[superfrank]

You have to remember that the big firms which are making a continous two way price quote aren't just offering one price and bidding one price they have a whole series of offer and bid prices.

Then, when they move their price, they just lift their inside bid or inside offer and their next best bid or offer become their current bid or offer. That order will usually have been put into the system many seconds or possibly many minutes before your order.

If you want to be at or near the front of the queue you need to enter your limit order when the market is trading many points away from your limit price.

Thanks for the info. I just assumed that moving orders to another price would reset the order time with respect to order priority. So there is a slight advantage to placing orders out of the money and moving them up/down to get filled when you want to get involved?

 

[EmotionIsTheBigEvel]

Okey, so it's not the number of contracts, but the heavy moving of contracts. Very good to read your post, clears things up. And will probably prevent me from getting angry again when I see that I didn't got a quick fill :-d

 

[sneha123]

:clap: :clap: :clap::clap:
Hello to all,
I'm new to futures trading, so I apologise in advance if I use any incorrect terminology. I have question for more experienced people...When placing limit orders are they placed in a queue with the priority being decided by the time those orders were placed, and nothing else? i.e. first in first out.It feels like my order is always shuffled to the back of the queue, and that I only get filled when the price goes through it.
I asked the broker and they said it was first in first out, but it doesn't feel like it!

 

[superfrank]

:clap: :clap: :clap::clap:
Hello to all,
I'm new to futures trading, so I apologise in advance if I use any incorrect terminology. I have question for more experienced people...When placing limit orders are they placed in a queue with the priority being decided by the time those orders were placed, and nothing else? i.e. first in first out.It feels like my order is always shuffled to the back of the queue, and that I only get filled when the price goes through it.
I asked the broker and they said it was first in first out, but it doesn't feel like it!

did you mean to just repeat the opening post? what's your point?!

 

[sneha123]

Hello sir ,,,,,,,,,,, sneha here, Thanks for reply my post so i'm very happy...actually sir i'm new in this site so i don't understand tell us my post.........sorry......

 

[BIBIqqq]

thanks for you information here.

Good luck.

I hope I will have a bright future. I want to be a professional football player.

 

[BIBIqqq]

It depends on the exchange. Go to the exchange website and search for the "matching algorithm".

 

[superfrank]

It depends on the exchange. Go to the exchange website and search for the "matching algorithm".

I've found the explanations of the various matching algorithms, but cannot find which algorithm each futures market uses. I'm specifically interested in 6B, 6E, CL, DX and FDAX.

I naively assumed that all orders would be matched on a FIFO basis, but this is obviously not the case.

My experience so far tells me that I'm always last in the queue when placing limit orders, but I seem to get matched instantly for stop losses (the price only has to brush against the order for it to be filled). It feels rigged in favour of some and I'm just trying to find out what's going on.

Any info much appreciated.

Regards.