Triggered stop orders

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Imported from previous forum

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In FIX the order types "Stop" and "Stop Limit" are defined.

What I cannot find in the specifications is what should be done if a Stop (Limit) order is triggered.

  • Is the order type just changed to "Market" or "Limit"?
  • Which value for the OrdStatus and ExecType should be used when a Stop (Limit) order is triggered?

Art van de Belt
FinCom+

3

[ original email was from Ryan Pierce - rpierce@taltrade.com ]
> In FIX the order types "Stop" and "Stop Limit" are defined.
>
> What I cannot find in the specifications is what should be done if a Stop (Limit) order is triggered.
>
> - Is the order type just changed to "Market" or "Limit"?
> - Which value for the OrdStatus and ExecType should be used when a Stop (Limit) order is triggered?

My understanding is that in FIX the order is treated as type Stop or Stop Limit throughout its entire life (assuming nobody does a Cancel / Replace on it.) No FIX messages are sent back when the stop is triggered.

In my experience with the US equities markets, I have not seen instances of messages sent when stops are triggered, although I believe a few European exchanges may send such messages.