Where are stop loss orders held - if entered by __trade leader__

Trading and Markets
1

I know that stop loss orders are held by Interactive Brokers if I add them on C2 as an investor, but I have my own strategy that I am experimenting with where I am the trade leader.

Where are stop loss orders held if they are entered by the trade leader?

I had a stop loss entered for a trade (as leader), but I did not see it reflected inside Interactive Brokers. Additionally, after the market passed through the stop level, nothing visually changed on C2 either. It still said there was a stop that had not executed, which was alarming given how quickly the market was moving. So, I manually tried to exit my position with a market order, and C2 errored out, telling me it could not sell to close because there was no open position. After that, everything cleared out (showed that no orders were active).

In my post-mortem review, the stop (as leader) seemed to execute at a less favorable level than I would have expected given the liquidity of the market. Is a trade leader stop actually held by C2 rather than the broker? This worries me because I know there are overnight times on the futures market where C2 is not able to communicate with Interactive Brokers because C2 only uses the USA IB server. It also worries me because it seems like C2-held stops have higher latency since they are awaiting the C2 platform to observe a price level first.

2

For me (as a trade leader), when the IB account sells, C2 sells due to brokertransmit. It doesn’t matter why IB sells, due to stop order, manually entered sell, etc. For C2’s side, it is one and the same, a market sell. So to answer your question, for myself, if I wanted to have a traditional stop order, it would be entered directly on IB as a normal stop order. If you enter a sell stop order, a sell limit order, a buy limit order, etc, nothing happens on C2, C2 doesn’t know about any of this. It’s when they execute that C2 knows. So you won’t see your stop order entered on IB reflected inside C2. I’ve never used C2’s stop orders, but I would guess they are more for traders that don’t use BrokerTransmit and manually enter orders on C2.

1 Like
3

Whoa nelly. I was not making reference to inputs through IB. All inputs I was giving were on C2. I was just observing the output on IB

4

I’m aware you entered the orders on C2. I was offering a potential solution to the issue as I understand it. If the desired solution involves still entering the orders on C2, then what I said doesn’t apply.