MARKET Levitra ORDER

The most common type of order is the Market Order. If you enter a Market Order, you state the number of contracts you want to buy or sell in a given contract month. You do not specify a price, since your objective is to have the order executed as soon as possible at the best possible price. Once a Market Order is placed it is filled and cannot be canceled.%%First Name%%

LIMIT ORDER

A Limit Order specifies a price limit at which the order must be executed. In other words, it must be filled at that price or better. The advantage is that you know the worst price you will get if the order is executed. The disadvantage is that you cannot be certain that the order will be filled.

When buying, if the order price is lower than (below) the current market price, it is a Buy Limit.
As an example, with the market trading at 250,
Buy 1 Dec Corn 250 on a Limit (or better…fill at 250 or lower).
Order can only be filled at the stated price (250) or lower (better).

When selling, if the order price is higher than (above) the current market price, it is a Sell Limit.
As an example, with the market trading at 250,
Sell 1 Dec Corn 255 on a Limit (or better…fill at 255 or higher).
Can only be filled at the stated price (255) or higher (better).

STOP ORDER

Stop Orders are not executed until the market reaches a given price, at which time they become Market Orders.

When buying, if the order price is higher than (above) the current market price, it is a Buy Stop.
As an example, with the market trading at 335,
Buy 1 Dec Wheat at 335 Stop.
Can only be filled at the Market, after the Market trades (or is “offered”) at 335 or higher.

When selling, if the order price is lower than (below) the current market price, it is a Sell Stop
As an example, with the market trading at 335,
Sell 1 Dec Wheat 330 Stop.
Can only be filled at the Market, after the Market trades (or is “bid”) at 330 or lower.

M.I.T. ORDER

Market If Touched. If the market trades at the trade price, the order will be filled at the next best price. Can only be used on Limit orders (not Stops).

G.T.C. ORDER

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!

As an example, you are long 1 Nov Soybeans and have a GTC order to sell 1 Nov Soybeans @ 537 Stop. You decide to sell your 1 long Nov Soybean on a Market order. Your GTC order must be canceled…or you will sell (short) 1 Nov Soybean if the market trades (or is “bid”) at 537 or lower.

If an order is not designated Good Till Canceled, it is a Day Order and will expire at the end of the current trading Tadacip session unless filled or canceled prior to the close.

O.C.O. ORDER

One (order) Cancels (the) Other.
As an example, with the market trading at 375 you want to buy at 370 Limit (lower), or on an upside breakout at 380 Stop (higher),
Buy 1 Dec Wheat 370 on a Limit, OCO
Buy 1 Dec Wheat 380 Stop.
Whichever order is executed first causes the other to be automatically canceled.

M.O.C. ORDER

Market On Close. Order will be filled at Market within the closing price range. Usually within the last 15 minutes of trading.

ENTER and CANCEL ORDER

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 Live Cattle and have a GTC order to sell 1 Dec Live Cattle @ 7700 Stop. With the market trading at 7800, you decide to sell your 1 long Dec Live Cattle on a Market order,
Sell 1 Dec Live Cattle @ Market, Cancel selling 1 Dec Live Cattle 7700 Stop on GTC order No. 12345.

If you are not sure how to enter an order, Ask Common Sense Capital. Not all exchanges accept all types of orders. As an an aid, we the following list shows the above order types by exchange, and states weather or not they commonly accept these order types or not. Be aware that the following list is a guide, and by no means will exchanges always follow these guidelines. Often during fast, or volatile market conditions, floor brokers o the various exchanges will only accept basic orders, such as Market Orders or Stop Orders.

DISCLOSURE OF RISK: THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS CAN BE SUBSTANTIAL; THEREFORE, ONLY GENUINE RISK FUNDS SHOULD BE USED. FUTURES AND OPTIONS ARE NOT SUITABLE INVESTMENTS FOR ALL INDIVIDUALS, AND INDIVIDUALS SHOULD CAREFULLY CONSIDER THEIR FINANCIAL CONDITION IN DECIDING WHETHER TO TRADE. OPTION TRADERS SHOULD BE AWARE THAT THE EXERCISE OF A LONG OPTION WOULD RESULT IN A FUTURES POSITION.
SEASONAL TENDENCIES ARE A COMPOSITE OF SOME OF THE MOST CONSISTENT COMMODITY FUTURES SEASONALS THAT HAVE OCCURRED IN THE PAST 15 YEARS. THERE ARE USUALLY UNDERLYING, FUNDAMENTAL CIRCUMSTANCES THAT OCCUR ANNUALLY THAT TEND TO CAUSE THE FUTURES MARKETS TO REACT IN SIMILAR DIRECTIONAL MANNER DURING A CERTAIN CALENDAR YEAR. EVEN IF A SEASONAL TENDENCY OCCURS IN THE FUTURE, IT MAY NOT RESULT IN A PROFITABLE TRANSACTION AS FEES AND THE TIMING OF THE ENTRY AND LIQUIDATION MAY IMPACT ON THE RESULTS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT HAS IN THE PAST, OR WILL IN THE FUTURE, ACHIEVE PROFITS USING THESE RECOMMENDATIONS. NO REPRESENTATION IS BEING MADE THAT PRICE PATTERNS WILL RECUR IN THE FUTURE. TENDENCY OCCURS IN THE FUTURE, IT MAY NOT RESULT IN A PROFITABLE TRANSACTION AS FEES AND THE TIMING OF THE ENTRY AND LIQUIDATION MAY IMPACT ON THE RESULTS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT HAS IN THE PAST, OR WILL IN THE FUTURE, ACHIEVE PROFITS USING THESE RECOMMENDATIONS. NO REPRESENTATION IS BEING MADE THAT PRICE PATTERNS WILL RECUR IN THE FUTURE.

Author Bio: My name is David Duty and I am the author of Common Sense Commodities Courses for both the Futures and Options markets. I’m a Commodity Trading Advisor and I’ve been teaching people to trade commodities for the past 10 years. Visit http://www.commonsensencommodities.com for more information.

Category: Finance/Currency Trading
Keywords: futures marketing trading, futures trading types, options trading, david duty, common sense commodities