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Hey Futures.IO Community, what is the path of a Futures order? For example, if someone is trading on the Windows App, when one clicks on Market order to Buy, what path does that request take?
Does it go to the IB or the FCM at all, or does it go straight to CQG/Rithmic, and they route it to the exchange?
I assume limit orders are held at the exchange but what about Stop orders? Are they at the exchange or do they sit at IB or FCM, waiting for triggering?
Someone correct me if I'm wrong but my understanding is that orders go from your device to the order router to the exchange. Some order routers will "hold/house" or store stop orders on their servers such that if you turn off your device/app, the stop order may still be executed. These are usually called "server side" stop or OCO orders.
My understanding is that stop orders are not housed at the exchange unless it's some special type of order that retail traders typically don't have access to due to small account sizes. There are certain types of CME held orders other than just limit orders. But retail traders will typically only have limit order held at the exchange.
However, all order routers may not hold/store stop orders. If your order router doesn't store your stop orders, it would be incumbent upon your trading app/platform to store it and send the order upon entry criteria occurring. These are usually called "client side" stop orders or OCO orders. If your computer or platform went down, your client side stop or OCO would not be sent, much less executed.
But I think it's more or less become industry standard to store stop orders at the order router.
Again, someone correct me if I am wrong.
Edit...to more directly answer, no the introducing broker and fcm should not touch the order on its way to the exchange. But they obviously have real-time access to that information.
