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[EnlightenedJoe]

5. Stop hunting doesn't happen at SB firms.

Yes it does. It is the market maker's right to hunt for orders, be those stops or other kinds. When SB is the MM then they are directly responsible for hunting stops.

 

[highbury fx]

Yes it does. It is the market maker's right to hunt for orders, be those stops or other kinds. When SB is the MM then they are directly responsible for hunting stops.

Are you saying that SB firms systematically hunt for stops all the time or at certain times only? Under what circumstances do SB firms hunt for stop losses and more interestingly how do they do it?

Please don't tell me they'll move a 20/23 quote to 04/23 to take out the sell stops at 05. It has to be more professional than that.

The more detailed you are in your explanation will help.

thanks, HF.

 

[EnlightenedJoe]

Are you saying that SB firms systematically hunt for stops all the time or at certain times only? Under what circumstances do SB firms hunt for stop losses and more interestingly how do they do it?

Please don't tell me they'll move a 20/23 quote to 04/23 to take out the sell stops at 05. It has to be more professional than that.

The more detailed you are in your explanation will help.

thanks, HF.

MM systematically fill orders. This is their job and business. For someone claiming to have worked in the industry and not being aware of that seems surprising. If you were Barjon, I could understand. But you are not.

 

[highbury fx]

MM systematically fill orders. This is their job. For someone claiming to have worked in the industry and not being aware of that seems surprising. If you were Barjon, I would understand. But you are not.

Hi EJ

I agree that the software systematically fills orders - that is after all a very important function to have.

But your point wasn't about filling orders it was about hunting for stops.

You are the one telling me that a SB firm is responsible for hunting for stops I am asking you again how do they do that and when they do that.

 

[EnlightenedJoe]

Hi EJ

I agree that the software systematically fills orders - that is after all a very important function to have.

But your point wasn't about filling orders it was about hunting for stops.

You are the one telling me that a SB firm is responsible for hunting for stops I am asking you again how do they do that and when they do that.

Do you know what a stop is ?

 

[foroom lluzers]

Hi EJ

I agree that the software systematically fills orders - that is after all a very important function to have.

But your point wasn't about filling orders it was about hunting for stops.

You are the one telling me that a SB firm is responsible for hunting for stops I am asking you again how do they do that and when they do that.

They widen spreads at night and during major news .They offer an overnight market , when markets are closed .They trade their secondary book against you.

 

[highbury fx]

Do you know what a stop is ?

Yes I do.

A stop order is an instruction to deal at the next available price once the order level has been touched. A limit order is an instruction to deal at a very specific price.

Are you answering questions with questions?

You told me SB firms hunt for stops as their right. My simple questions to you were under what circumstances do they do that and how do they do that?

 

[highbury fx]

They widen spreads at night and during major news .They offer an overnight market , when markets are closed .They trade their secondary book against you.

I'd agree with what you say up until the made up part about a secondary book.

But what you say doesn't have anything to do with hunting for stops. What you talk about is the SB firm either making the most of illiquid markets to capture more spread or reflecting the thin market conditions in their price.

 

[EnlightenedJoe]

Yes I do.

A stop order is an instruction to deal at the next available price once the order level has been touched. A limit order is an instruction to deal at a very specific price.

Are you answering questions with questions?

You told me SB firms hunt for stops as their right. My simple questions to you were under what circumstances do they do that and how do they do that?

I was just trying to establish where you are coming from.

But let me tell you what my game is. I promised Barjon I will pin him down. He is in that hole right there with you. All I want is for him to cry "uncle". I don't have an issue with you, and you are welcome to defend your industry.

So, here's to answer you question with your own words:

"I agree that the software systematically fills orders" ... "A stop order is a ..."

In other words you admit to:

I agree that the software systematically fills STOP ORDERS.

 

[darktone]

Ahhhhh, reality visits the thread.

Heads up for highbury. Im predicting a barrage of misguided beliefs and endless circular nonsensical stooge implying replies coming your way :whistling

GL

 

[EnlightenedJoe]

Ahhhhh, reality visits the thread.

Heads up for highbury. Im predicting a barrage of misguided beliefs and endless circular nonsensical stooge implying replies coming your way :whistling

GL

You are no stooge. You are just a math teacher.

 

[foroom lluzers]

I'd agree with what you say up until the made up part about a secondary book.

But what you say doesn't have anything to do with hunting for stops. What you talk about is the SB firm either making the most of illiquid markets to capture more spread or reflecting the thin market conditions in their price.

Their secondary book can be run with their owner's positions .Example :Owner is a multimillionaire that trades indirectly for stops against clients.

About 20 years ago , my position got closed middle of night , stop was very far but it was hit. I suspect the secondary book price moved to my stops , then reverted back to original price.

 

[highbury fx]

I was just trying to establish where you are coming from.

But let me tell you what my game is. I promised Barjon I will pin him down. He is in that hole right there with you. All I want is for him to cry "uncle". I don't have an issue with you, and you are welcome to defend your industry.

So, here's to answer you question with your own words:

"I agree that the software systematically fills orders" ... "A stop order is a ..."

In other words you admit to:

I agree that the software systematically fills STOP ORDERS.

I agree that the software systematically fills stop orders but that isn't what you said. You said SB firms hunt for stops.

Stop hunting is when a particular level in the market is achieved by either large volume selling or large volume buying to move the thin market to the desired level. Goldmans or SocGen or BNP or Deutsche may have the credit lines to attempt that but there isn't a SB firm in existence that could move EURUSD by more than a few pips. SB firms have so much 2 way flow and make so much spread that it isn't in their interest to try and influence where an FX pair trades. That consipiracy theory is bonkers.

I can see now you are confused with a SB firm filling stop orders automatically and what stop hunting actually means. It's fine to be wrong but when too many people insist they are right without the correct knowledge or deep understanding of the point they're defending it becomes a distraction to people who are trying learn.

if you had read some of my previous posts you will see I only defend my position from BS posts. I also don't consider myself to be in a hole. I consider myself in T2W terms as being an experienced voice that has proven himself to not put spin on answers.

 

[foroom lluzers]

Thank God for some facts from someone who actually knows what he is talking about. Won't halt the conspiracy theorists in their tracks, though, they've got to blame their losses on someone but themselves after all.

You always make statements that are rebuttals against spread betting companies.Seems like you have an agenda.

 

[barjon]

I was just trying to establish where you are coming from.

But let me tell you what my game is. I promised Barjon I will pin him down. He is in that hole right there with you. All I want is for him to cry "uncle". I don't have an issue with you, and you are welcome to defend your industry.

So, here's to answer you question with your own words:

"I agree that the software systematically fills orders" ... "A stop order is a ..."

In other words you admit to:

I agree that the software systematically fills STOP ORDERS.

Wow, I feel the pain - like being savaged by a dead sheep

 

[EnlightenedJoe]

I agree that the software systematically fills stop orders but that isn't what you said. You said SB firms hunt for stops.

Stop hunting is when a particular level in the market is achieved by either large volume selling or large volume buying to move the thin market to the desired level. Goldmans or SocGen or BNP or Deutsche may have the credit lines to attempt that but there isn't a SB firm in existence that could move EURUSD by more than a few pips. SB firms have so much 2 way flow and make so much spread that it isn't in their interest to try and influence where an FX pair trades. That consipiracy theory is bonkers.

I can see now you are confused with a SB firm filling stop orders automatically and what stop hunting actually means. It's fine to be wrong but when too many people insist they are right without the correct knowledge or deep understanding of the point they're defending it becomes a distraction to people who are trying learn.

if you had read some of my previous posts you will see I only defend my position from BS posts. I also don't consider myself to be in a hole. I consider myself in T2W terms as being an experienced voice that has proven himself to not put spin on answers.

A hunt is systematic in nature. If an SB systematically fills orders, then it is no different to hunting those orders.

 

[barjon]

You always make statements that are rebuttals against spread betting companies.Seems like you have an agenda.

Sure do, it's called truth.

 

[barjon]

A hunt is systematic in nature. If an SB systematically fills orders, then it is no different to hunting those orders.

Wriggle, wriggle, wriggle - what bollox you write.

 

[highbury fx]

Ahhhhh, reality visits the thread.

Heads up for highbury. Im predicting a barrage of misguided beliefs and endless circular nonsensical stooge implying replies coming your way :whistling

GL

lol.. i'm happy to try and help and answer from my side of the fence. I've always said it matters not a jot to me whether I'm believed or not.

I haven't been on here for a few months, just getting my fix

btw - Seinfeld is my absolute favourite... 'is anybody here a marine biologist'

 

[highbury fx]

A hunt is systematic in nature. If an SB systematically fills orders, then it is no different to hunting those orders.

ok, I can see why you're confused. I think your interpretation of what a stop hunt actually is is not correct. Let me explain how a SB model works in terms of orders.

A spreadbet firm quotes 100 currency pairs, each to 5 decimal places. That's a lot of price updates. A spread bet firm also has thousands of clients placing thousands of trades and even more orders to open or attached orders to close. A lot of those orders are being regularly amended or cancelled.

There needs to be a system in place at the SB firm that automatically scans every order working in the system every time a price moves to check whether it needs to be filled or not based on the current market level. That would be impossible to do manually. That is what is meant by the systematic filling of stops (and all other order types). It is different to hunting for stops.

I hope that is clear for you now.