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Suppose I place a stop limit sell order at $10 (limit set at $9) for a stock that trades atm at $15. Will my order be visible on the open market immediately or only after it becomes a limit order (when the stock price on the open market reaches the $10 mark) ?

Same question for the stop order.

Update: If the stop order is not visible before the stop price is reached, is there anything legally preventing the brokerage firms/banks in sharing with third-parties their clients stop orders before they become market/limit orders ? I think this information could be used by short sellers (when they want to cover) and would be against the interest of longs.

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From the non-authoritative Investopedia page:

A stop-limit order will be executed at a specified price, or better, after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better.

So once the stop price has been breached, your limit order is placed and will be on the order books as a $9 ask.

For a vanilla stop order, a market order will be placed and will be filled using the highest active bid(s).

  • That part is clear. But is the stop order visible in the order book before the stop price is reached ? – Eugen Jun 16 '17 at 7:57
  • If you mean in the bid/ask order list then no - only when the limit order is created. It's obviously in the broker's order system, though. – D Stanley Jun 19 '17 at 13:30
  • So you mean, until the stop order becomes a market order it is not visible outside the broker's system ? – Eugen Jun 19 '17 at 20:36
  • @Eugen until the stop order becomes a market order or a limit order, I do not think so. It's possible the exchange has that information somewhere, but it will not be in the bid/ask order tree until it becomes an actual market or limit order. – D Stanley Jun 19 '17 at 20:48
  • I've recently encountered the concept of "Server Order". A stop order is a server order (meaning it is only stored on the broker's system) until it is triggered so it is not visible on the exchange. – Eugen Sep 24 '17 at 14:46

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