Why a Triggered Stop Order Can Fill at a Limit Price
Summary
A trader reports that a local stop order on a simulated Chinese futures account triggered after a long position was opened, but the resulting fill was far below the displayed stop level. The discussion explains that the stop order’s displayed price is its local trigger price, not necessarily the limit price sent to the exchange once triggered.
A respondent says the strategy engine uses a limit price far from the current order book to make execution more likely. The exchange fill can therefore differ sharply from the trigger level, depending on available liquidity and order handling. The suggested remedy is to change the strategy engine’s order-price logic if this behavior does not fit the trader’s requirements. The thread is a brief support exchange, not a systematic analysis; it does not detail the exact pricing rule, the market conditions behind the reported fill, or the risks of modifying that rule.
Key ideas
- A local stop price can serve only as the trigger condition, rather than the exchange order price.
- When triggered, a strategy engine may submit a limit order priced far from the current market to improve the chance of execution.
- The eventual fill may consequently diverge substantially from the displayed stop level.
- Traders can adjust the strategy engine’s order-price logic, but the discussion gives no implementation details.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.