Order Entry Guide
|
Market:
|
| Abbreviation |
MKT |
| Additional Specifications: |
Buy/Sell-Quantity-Commodity-Month-Year |
| Explanation of Order |
Buy/Sell order, regardless of price |
| When to Use |
Expectations of a big immediate move or a quick profit taking |
| How its Placed |
N/a |
| Broker/Online Placement Example |
Buy 7 Feb 2002 Gold at market |
| Market On Open: |
| Abbreviation: | MOO |
| Additional Specifications: | Buy/Sell-Quantity-Commodity-Month-Year |
| Explanation of Order | Buy/Sell order, regardless of price |
| When to Use | Expectations of a big immediate move or a quick profit taking |
| How its Placed | Buy /Sell placed prior to market open |
| Broker/Online Placement Example | Buy 7 March 2003 Silver on open |
| Market On Close: |
| Abbreviation: | MOC |
| Additional Specifications: | Buy/Sell-Quantity-Commodity-Month-Year |
| Explanation of Order | Buy/Sell order, regardless of price |
| When to Use | Expectations of a big immediate move or a quick profit taking |
| How its Placed | Buy /Sell placed prior to market open |
| Broker/Online Placement Example | Buy 7 December 2003 SP on close |
| Market if Touched: |
| Abbreviation: | MIC |
| Additional Specifications: | Buy/Sell-MIT Price-Quantity-Commodity-Month-Year |
| Explanation of Order | Buy/Sell when market price touched |
| When to Use | When we expect certain price level to trigger a reversal |
| How its Placed | Buy MIT placed below market, Sell placed above |
| Broker/Online Placement Example | Buy 7 March 2002 Copper at 78.00 MIT |
| Stop Order: |
| Abbreviation: | STP |
| Additional Specifications: | Buy/Sell-MIT Price-Quantity-Commodity-Month-Year |
| Explanation of Order | Buy/Sell when the market hits stop |
| When to Use | Used as a stop loss or as an entry point above or below support/ resistance |
| How its Placed | Buy Stops placed above market, Sell Placed Below |
| Broker/Online Placement Example | Buy 7 Nov 2002 Oil on a Stop |
| Limit Order: |
| Abbreviation: | LMT |
| Additional Specifications: | Buy/Sell-MIT Price-Quantity-Commodity-Month-Year |
| Explanation of Order | Buy/Sell at a stated price or Better |
| When to Use | Used usually when trades are of short term nature or large quantity |
| How its Placed | Buy limit below market, Sell above market |
| Broker/Online Placement Example | Buy 7 Dec 2002 Lean Hogs at 50 on Limit |
| Stop Limit Order: |
| Abbreviation: | LMT |
| Additional Specifications: | Buy/Sell-STP Price-LMT Price-Quantity-Commodity-Month-Year |
| Explanation of Order | Buy/Sell with a stop and limit order |
| When to Use | Used when the trader wants to avoid slippage and get a specific price |
| How its Placed | Buy Stops placed above market, Sell Placed Below+specify limit |
| Broker/Online Placement Example | Buy 7 May 2003 Corn 2.50 Stop Limit 2.52 |
| One Cancels Other |
| Abbreviation: | OCO |
| Additional Specifications: | Buys Or Sells-Limit Prices Or Stop Prices-Commodity-Month-Year |
| Explanation of Order | 2 order of Buys or Sells Or Combined |
| When to Use | Used to protect profits and simultaneously place a Stop or used for Breakouts |
| How its Placed | Placed 2 order with a combination of orders above one will cancel Other |
| Broker/Online Placement Example | Buy 7 Feb 2002 Gold 300 Limit OCO MOC |
Additonal Notes:
Stops order are also used to protect profits. So you should be able to raise them as the market moves in your favour. For example: You bought 7 contracts of Feb Gold at 300. Now the price moved to 320 and you are profiting $14,000(7 Contracts*20*$100 a Point). Initially, you have placed a stop at 2.92 to limit your loss. You can call your broker (or do it your trading system) a move a stop. For example: Please cancel my Feb Gold stop at 292 and move it to 315. If the trend keeps on going in your favour you can keep on moving the stop to maximize your profit.
OCO orders can be used in a number of different fashions. You can place entry orders, like Buy 7 March 2003 Japanese Yen at 83.00 Stop Stop OCO Sell 7 March 2003 Japanese Yen 82.50. Assuming the price is in between, you will be able to buck the trend if the break out prices you chose are correct. Also you can place a protective stop and profit target at the same time.
Lets say you are holding a Feb 2003 Gold contract that you have bought at 300- you could place the following order Sell 7 Feb 2003 Gold at 2.96 on a Stop OCO Sell 7 Feb 2003 Gold at 315 Limit.
Stop loss orders may not limit your losses to the amount intended. Certain market conditions may get difficult or impossible to execute such orders. You should be aware that there is a risk of loss in futures trading