Native v. Synthetic
CQG software supports a variety of order types. Sometimes those order types are native to a particular exchange, and sometimes they aren’t. When they aren’t, the system handles them as synthetic order types. CQG also offers our own order types, such as DOM-triggered stops, and they are also handled synthetically.
Synthetic order types are worked on the CQG side until certain conditions are met. When those conditions are met, the system sends an order to the exchange using an order type that is native to that exchange.
Note about Timing
Synthetic Order Manager uses bid, ask, and trade data from CQG’s market data feed to determine whether a synthetic order should be triggered. Some exchanges send bids and asks during market phases when matching is not active. This can lead to a synthetic order being triggered and sent to the exchange but filled only later when matching becomes active again, potentially resulting in an order being filled at a price far from the bid or ask that triggered it.