This seems like an important distinction. If the bid price suddenly dips below my stop loss, but nobody sells to that bidder, does the stop loss get triggered?
1 Like
Stop orders are triggered by the last âvalidâ trade price. What is a âvalidâ trade? Here is the list of conditions which exclude a trade from being valid.
| Feed | Tape | Condition | Description |
|---|---|---|---|
| CTS | AB | B | Average Price Trade |
| UTDF | C | W | Average Price Trade |
| CTS/UTDF | ABC | 4 | Derivatively Priced |
| CTS/UTDF | ABC | 7 | Qualified Contingent Trade (âQCTâ) |
| CTS/UTDF | ABC | 9 | Corrected Consolidated Close (per listing market) |
| CTS/UTDF | ABC | C | Cash Sale |
| CTS/UTDF | ABC | G | Bunched Sold Trade |
| CTS/UTDF | ABC | H | Price Variation Trade |
| CTS/UTDF | ABC | I | Odd Lot Trade |
| CTS/UTDF | ABC | N | Next Day |
| CTS/UTDF | ABC | P | Prior Reference Price |
| CTS/UTDF | ABC | Q | Market Center Official Open |
| CTS/UTDF | ABC | R | Seller |
| CTS/UTDF | ABC | T | Form T |
| CTS/UTDF | ABC | U | Extended Trading Hours (Sold Out of Sequence) |
| CTS/UTDF | ABC | V | Contingent Trade |
| CTS/UTDF | ABC | Z | Sold (out of Sequence) |
Those are âconditionâ parameters set for each trade which appears on the SIP data feeds. If a trade has one of those conditions it doesnât trigger a stop. Additionally, the âmarketâ price that is typically displayed is also not updated.
2 Likes
Thank you for this explanation