Stop order & Time In Force restriction

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Imported from previous forum

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I wanted to clarify my knowledge on the effect of Time In Force on stop/stop limit orders.
We are going to trade on CME. Doesn’t Time In Force (Day/GTC/FOK/FAK) has the same effect on Stop/Stop limit orders as it does on Market/limit orders? Also, are all those TimeInForce values allowed for stop/stop limit orders?

There was a question raised with in the team that in case of stop/stop limit orders, once the order is triggered (stop price is hit), the Time In Force value has no effect on the order and it will become a Day order. I don’t think that is correct, but would appreciate if anybody can confirm it. Thanks.

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We don’t allow Stop with FAK but everything else is allowed – Stop with Day/GTC/GTD. Yes once the Stop triggers then the Time In Force value will continue to apply to it. The Time In Force value also applies to Stops which have not been triggered – for example a day stop order will be eliminated at market close regardless and a GT stop will continue to stay on the book.

I wanted to clarify my knowledge on the effect of Time In Force on stop/stop limit orders.
We are going to trade on CME. Doesn’t Time In Force (Day/GTC/FOK/FAK) has the same effect on Stop/Stop limit orders as it does on Market/limit orders? Also, are all those TimeInForce values allowed for stop/stop limit orders?

There was a question raised with in the team that in case of stop/stop limit orders, once the order is triggered (stop price is hit), the Time In Force value has no effect on the order and it will become a Day order. I don’t think that is correct, but would appreciate if anybody can confirm it. Thanks.

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Thanks Aditya. I believe you also mean you don’t allow Stop/Stop Limit with FAK and FOK?
So, effectively:
Limit/Market - Day/GTD/GTC/FAK/FOK
Stop/Stop Limit - Day/GTD/GTC

Correct? Thanks.

We don’t allow Stop with FAK but everything else is allowed – Stop with Day/GTC/GTD. Yes once the Stop triggers then the Time In Force value will continue to apply to it. The Time In Force value also applies to Stops which have not been triggered – for example a day stop order will be eliminated at market close regardless and a GT stop will continue to stay on the book.

I wanted to clarify my knowledge on the effect of Time In Force on stop/stop limit orders.
We are going to trade on CME. Doesn’t Time In Force (Day/GTC/FOK/FAK) has the same effect on Stop/Stop limit orders as it does on Market/limit orders? Also, are all those TimeInForce values allowed for stop/stop limit orders?

There was a question raised with in the team that in case of stop/stop limit orders, once the order is triggered (stop price is hit), the Time In Force value has no effect on the order and it will become a Day order. I don’t think that is correct, but would appreciate if anybody can confirm it. Thanks.

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Yes correct – we don’t allow either FAK or FOK for both Stop Protect and Stop Limit.

Your summary below is accurate.

Thanks Aditya. I believe you also mean you don’t allow Stop/Stop Limit with FAK and FOK?
So, effectively:
Limit/Market - Day/GTD/GTC/FAK/FOK
Stop/Stop Limit - Day/GTD/GTC

Correct? Thanks.

We don’t allow Stop with FAK but everything else is allowed – Stop with Day/GTC/GTD. Yes once the Stop triggers then the Time In Force value will continue to apply to it. The Time In Force value also applies to Stops which have not been triggered – for example a day stop order will be eliminated at market close regardless and a GT stop will continue to stay on the book.

I wanted to clarify my knowledge on the effect of Time In Force on stop/stop limit orders.
We are going to trade on CME. Doesn’t Time In Force (Day/GTC/FOK/FAK) has the same effect on Stop/Stop limit orders as it does on Market/limit orders? Also, are all those TimeInForce values allowed for stop/stop limit orders?

There was a question raised with in the team that in case of stop/stop limit orders, once the order is triggered (stop price is hit), the Time In Force value has no effect on the order and it will become a Day order. I don’t think that is correct, but would appreciate if anybody can confirm it. Thanks.