 Market Order
Order Types - 05 April 2006
The market order is the most frequently used order. It is a good order to use once you have made a decision about opening or closing a position. It can keep the customer from having to chase a market trying to get in or out of a position. The market order is executed at the best possible ... read more Limit Order
Order Types - 05 April 2006
The limit order is an order to buy or sell at a designated price. Limit Orders to buy are placed below the market while limit orders to sell are placed above the market. Since the market may never get high enough or low enough to trigger a limit order, a customer may miss the market if he uses ... read more Stop Order
Order Types - 05 April 2006
Stop orders can be used for three purposes:
- to minimize a loss on a long or short position;
- to protect a profit on an existing long or short position; or
- to initiate a new long or short position.
A buy stop order is placed above the ... read more Stop Limit Order
Order Types - 05 April 2006
A stop limit order lists two prices and is an attempt to gain more control over the price at which your stop is filled. The first part of the order is written like the above stop order. The second part of the order specifies a limit price. This indicates that once your stop is ... read more Stop Close Order (SCO)
Order Types - 05 April 2006
The stop price on a stop close only will only be triggered if the market touches the stop during the close of trading. The disadvantage of this order is a fast market in the last few minutes of trading may cause the order to be filled at an undesirable price. It can, however, ... read more Market If Touched Order (MIT)
Order Types - 05 April 2006
MITs are the opposite of stop orders. Buy MITs are placed below the market and Sell MITs are placed above the market. An MIT order is usually used to enter the market or initiate a trade. An MIT order is similar to a limit order in that a specific price is placed on the order. ... read more Good Until Canceled Order (GTC)
Order Types - 05 April 2006
Good Till Canceled (or Open Order). Used in conjunction with a Limit or Stop order. Order will remain valid and worked until client cancels order, or it is filled, or contract expires.
GTC Order Does Not Cancel Automatically! ... read more One Cancels the Other Order (OCO)
Order Types - 05 April 2006
One (order) Cancels (the) Other.
As an example, with the market trading at 7800 you want to buy at 7600 Limit (lower), or on an upside breakout at 7900 Stop (higher), Buy 1 Dec DJIA 7600 on a Limit, OCO Buy 1 Dec DJIA 7900 ... read more Market on Close (MOC)
Order Types - 05 April 2006
This is an order that will be filled during the final seconds of trading at whatever price is available. PLEASE NOTE: A FLOOR BROKER RESERVES THE RIGHT TO REFUSE AN MOC ORDER UP TO FIFTEEN MINUTES BEFORE THE CLOSE DEPENDING UPON MARKET CONDITIONS. ... read more Market on Opening (MOO)
Order Types - 05 April 2006
This is an order that the customer wishes to be executed during the opening range of trading at the best possible price obtainable within the opening range. Not all exchanges recognize this type of order. One such exchange is the Chicago Board of Trade. ... read more Spread Order
Order Types - 05 April 2006
The customer wishes to take a simultaneous long and short position in an attempt to profit via the price differential or "spread" between two prices. A spread can be established between different months of the same commodity, between related commodities or between the same or ... read more Enter and Cancel Order
Order Types - 05 April 2006
All orders, except Market Orders, can be canceled and replaced with a different order unless filled prior to cancellation.
As an example, you are long 1 Dec DJIA and have a GTC order to sell 1 Dec DJIA @ 7700 Stop. With the market trading at ... read more Or Better Order
Order Types - 05 April 2006
The pit broker is obligated to get the best possible price for the customer. Putting an OB on an order does not cause him to work harder. If the price is NOT OB, the broker is irritated because he is paying special attention to a ticket that does not deserve it. Think of OB ... read more Fill or Kill Order (FOK)
Order Types - 05 April 2006
The fill or kill order is used by customers wishing an immediate fill, but at a specified price. The floor broker will bid or offer the order three times and immediately return either a fill or an unable. ... read more
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