Simon - could you please explain the following. If I buy let's say 1 TOPDWS warrant (or any instrument for that matter) at 100c. I then protect my downside by putting in a stop loss at 80c. But I also predict some sharp market movement and put in a selling order for 140c.(Both can currently be done). If TOPDWS then hits 140c my share is sold and the stop-loss automatically expires. HOWEVER if TOPDWS goes down and hit 80c the system then sees the selling order at 140c and automatically CANCELS the stop order due to "no shares available to sell". The stop order will thus fail. Why can't you apply the same principle to share prices hitting stop losses as you apply to selling orders at target price? In other words the selling order expires when the share price hits the stop loss and the stop loss is excecuted? In my opinion this is a MAJOR flaw in the sytem. It effectively means one cannot trade while having stop losses in place - especially volatile instruments such as wave warrants!
hmmm, well not an OST flaw - it's how the JSE works. If you place an order on market (to sell at 140c) then you have issued instruction for that wave and can not issue new instruction (to sell at stop of 80c) until first instruction is cancelled. But that's why we have SMS alerts and a call centre. That said will have a look.
Please do. I understand what you are saying but surely one can program the OST-system to accept and execute both? I is also almost impossible to execute a selling order and stop-loss at the same price. And even if by a long shot this price is the same then an error message should tell you it can't be done and price then adjusted. The basics of trading volatile instruments for me is that one should be able to trade both ways - not only one way. Also bear in mind that even when receiving a sms one still needs to get to a PC or call and get the deal executed etc. When dealing with wave warrants seconds count! This cost me 6k on Thursday...
I don't understand "execute a selling order and stop-loss at the same price"? Also remember the stop loss system has serious limitations when trading warrants/waves/instalments that frankly make the whole issue moot.
The only reason why I say "the same price" is that is the only logical reason I can think of of why any trading system won't allow you to effectively put 2 selling orders in place (for different reasons). And I don't agree with a stop-loss not efeective when dealing with wave warrants etc. But that is another topic all on its own. For now I would really like STD to program the trading system so that one can put a stop-loss in place, trade above that and when hitting the stop loss sell the number that you have put a stop-loss on and automatically cancel selling orders that you might have above that price... Simple really!
your stop gets hit at 80c and placed to sell on market, you also have the stock on market on sell at 140c. Another trader sees the 80c sell offer and puts in a buy at market for twice the 80c volume. If nobody else is inbetween the 80c and 140c sells the at market would hit both. certainly seen it happen before.