Can someone explain this to me like I'm a 10 year old? I can't quite get my head around it. I even think I stumped my FCM.
I was using stop loss orders in NinjaTrader with TT to chase profits on a couple contracts today, and I kept getting my new stop placement rejected, along with the following error pop-up message:
Order Rejected: Broker or Exchange Option
From Gateway: Order price is outside bands 'Difference between stop and limit price is larger than banding value of 9.75 using Delta 1.00'
Now I wasn't using stop limit orders, just stop orders, so this really confused me. I actually had to cancel my previous stops and create new ones, then drag those up or down. And sometimes I then had to cancel THOSE, and create a third stop. Obviously this was all irritating in the heat of things and I think I lost some profit because of the delay.
I tried searching around and I found information on it, but I still don't understand it:
CME Banding, NT error with moving stop on TT - NinjaTrader Support Forum (
Question regarding how NT handles stop market orders on Globex - NinjaTrader Support Forum (
Price Band Variation - Electronic Platform Information Console - Confluence (
Price Banding - Electronic Platform Information Console - Confluence (
So, as far as I can tell, this isn't a NT issue, it's because the CME doesn't use "true" market on stop orders, in an effort to protect customers from getting horrible fills, or accidentally placing an order that would put them in the market far from the current price (and also prevent the market from moving accordingly). So they use "market with protection" orders instead. And I vaguely understand that for each contract, there is a "price band" they apply to the current price, and attempted orders outside of that range are rejected:
From what I can tell, the price band is tied to where my stop was originally entered, not the market price. It appears that whenever I tried to move my stop by more than 5 points from where I first placed it, it would be rejected. That's why if I cancelled it and created a new one, it would be accepted and I could go back to dragging....until I was 5 points away from the new stop entry again.
So how do I get around that? Would using stop limit orders instead allow me to continue to chase, or would I actually need to cancel and create new stops any time the price moved more than 5 points away from my original stop entry point?
I hope that makes sense. I've never run across the issue before or even seen it discussed really, it was quite a shock when it happened in live trading. :pcguru: