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.