Open Account

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 OrderBuy/Sell order, regardless of price
When to UseExpectations of a big immediate move or a quick profit taking
How its PlacedBuy /Sell placed prior to market open
Broker/Online Placement ExampleBuy 7 March 2003 Silver on open
Market On Close:
Abbreviation:MOC
Additional Specifications:Buy/Sell-Quantity-Commodity-Month-Year
Explanation of OrderBuy/Sell order, regardless of price
When to UseExpectations of a big immediate move or a quick profit taking
How its PlacedBuy /Sell placed prior to market open
Broker/Online Placement ExampleBuy 7 December 2003 SP on close
Market if Touched:
Abbreviation:MIC
Additional Specifications:Buy/Sell-MIT Price-Quantity-Commodity-Month-Year
Explanation of OrderBuy/Sell when market price touched
When to UseWhen we expect certain price level to trigger a reversal
How its PlacedBuy MIT placed below market, Sell placed above
Broker/Online Placement ExampleBuy 7 March 2002 Copper at 78.00 MIT
Stop Order:
Abbreviation:STP
Additional Specifications:Buy/Sell-MIT Price-Quantity-Commodity-Month-Year
Explanation of OrderBuy/Sell when the market hits stop
When to UseUsed as a stop loss or as an entry point above or below support/ resistance
How its PlacedBuy Stops placed above market, Sell Placed Below
Broker/Online Placement ExampleBuy 7 Nov 2002 Oil on a Stop
Limit Order:
Abbreviation:LMT
Additional Specifications:Buy/Sell-MIT Price-Quantity-Commodity-Month-Year
Explanation of OrderBuy/Sell at a stated price or Better
When to UseUsed usually when trades are of short term nature or large quantity
How its PlacedBuy limit below market, Sell above market
Broker/Online Placement ExampleBuy 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 OrderBuy/Sell with a stop and limit order
When to UseUsed when the trader wants to avoid slippage and get a specific price
How its PlacedBuy Stops placed above market, Sell Placed Below+specify limit
Broker/Online Placement ExampleBuy 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 Order2 order of Buys or Sells Or Combined
When to UseUsed to protect profits and simultaneously place a Stop or used for Breakouts
How its PlacedPlaced 2 order with a combination of orders above one will cancel Other
Broker/Online Placement ExampleBuy 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