I am a total idiot noob. CL contract I am curious what happens when the market runs away 10 bucks and is locked for 5 minutes. 1) If I were to have my stop in place would I likely get stopped out or would it blow past my stop? (market stop) 2) on days the CL makes limit moves is there an opportunity to get out or reverse. Does it go directly from say 93.34 to 103.34 in a matter of seconds or does it do so in minutes? 3) Would there be any liquidity for my losing contract or would I be stuck with it? No- I am not trading CL yet. I am using Think or swims "on demand" feature until I become consistent. The problem with "on demand" is while it replays previous market days the order filling is questionable. It might "fill" my order if I go back to trade a limit day but that might not be realistic.
I've also wondered what the worst liquidity gap could be in a really strong move. I've seen .50+ gaps on the release of the Wed inventory report, meaning a stop order would be filled at least .50 worse than expected. I've been day trading CL live for close to 4 years now and never encountered a limit day or slippage worse than 21 ticks on a breakout move.
1) Theoretically, the market can blow through your stop-order, lock limit, remain at lock limit, with your stop-order in an unfilled pool of orders. 2) I believe the last time CL made a limit-move of $10 was January-1991 with the breakout of the Gulf War. It was a "different" era. Traders wore loin cloths and communicated via smoke signals. 3) Theoretically, you could be stuck with no liquidity on a limit move. Theoretically, the market can make additional, consecutive lock-limit moves and really, really drain your account. 4) You may want to consider trading a "tamer" market.
Thanks for the response. I would hate to be on the wrong side of a limit day. 10,000 dollars is a chunk of change.
I trade almost all the commodity markets that are liquid, this includes cl, and the only place in my experience that you have a real possibility of getting run over even with a stop in is in the softs. With that said any market can run you over so be prepared for the worst at all times.