Stop order for cut the wins.

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Imported from previous forum

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[ original email was from Francesc Prats - fprats@meff.com ]
Here, in MEFF, we have 2 types of stop limit orders (and, also, 2 types of stop orders): to cut the losses (corresponding to values 3 & 4 for field OrdType) and to cut the wins.
I don’t know if some other Exchange has the same case as ours.
I think the best way is ask for a modification of the valid values for OrdType field in order to include 2 more values (one for a new stop and another for a new stop limit). Am I right?. If the answer is yes, in the meantime, what can I do for implementing these new orders in a FIX protocol?.
Thanks a lot.

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[ original email was from Donald Mendelson - dmendelson@cmcplace.com ]
> Here, in MEFF, we have 2 types of stop limit orders (and, also, 2 types of stop orders): to cut the losses (corresponding to values 3 & 4 for field OrdType) and to cut the wins.
> I don’t know if some other Exchange has the same case as ours.
> I think the best way is ask for a modification of the valid values for OrdType field in order to include 2 more values (one for a new stop and another for a new stop limit). Am I right?. If the answer is yes, in the meantime, what can I do for implementing these new orders in a FIX protocol?.
> Thanks a lot.
>

In U.S. futures markets, an order to lock in a profit (as opposed to stop loss) is know as Market-If-Touched. It is similar to a Stop order
in that it converts to a Market order if the trigger price is hit.

> But we have also a "stop limit order to lock in a profit". Something like a
> "Limit-If-Touched order", which converts to a Limit order if the trigger
> price is hit. Any ideas?.

A simple limit order is called for. - From Jay Schnurr

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[ original email was from Francesc Prats - fprats@meff.com ]
> > Here, in MEFF, we have 2 types of stop limit orders (and, also, 2 types of stop orders): to cut the losses (corresponding to values 3 & 4 for field OrdType) and to cut the wins.
> > I don’t know if some other Exchange has the same case as ours.
> > I think the best way is ask for a modification of the valid values for OrdType field in order to include 2 more values (one for a new stop and another for a new stop limit). Am I right?. If the answer is yes, in the meantime, what can I do for implementing these new orders in a FIX protocol?.
> > Thanks a lot.
> >
>
> In U.S. futures markets, an order to lock in a profit (as opposed to stop loss) is know as Market-If-Touched. It is similar to a Stop order
> in that it converts to a Market order if the trigger price is hit.
>
>
> > But we have also a “stop limit order to lock in a profit”. Something like a
> > “Limit-If-Touched order”, which converts to a Limit order if the trigger
> > price is hit. Any ideas?.
>
> A simple limit order is called for. - From Jay Schnurr
>
>
Yes, but a limit order has not the same behaviour as a “stop limit order to lock in a profit”. There are two differences:
a) A stop limit order has two prices (which eventually may be different): the trigger price and the limit price while the limit has only one.
b) A stop limit order is hidden until it is triggered, while the limit order not.