Order placement guide

Type of Order

Must Specify

What it Means

Duration

Best Use

Placement

Example

Market Order

1.  Buy or Sell

2.  Number of contracts

3.  Commodity

4.  Month/Year

Buy or sell now, regard­less of price.

Good only for the cur­rent day.

Liquid Markets for quick entry or exit.

N/A

“I want to sell 3 March 2015 NYMEX WTI crude contracts at the market.”

Stop Order

1.  Buy or Sell

2.  Number of contracts

3.  Commodity

4.  Month/ Year

5.  Stop price

Buy or sell at the market, but not until the bid or asked price reaches the stop price.

Good only for the cur­rent day unless speci­fied other­wise.+

To enter or exit when the market trend reverses.  To enter or exit when the market establishes a trend beyond a support or resis­tance level.

Buy stop entered above the current market price.  Sell stop entered below the current market price.

“I want to buy 8 March 2015 CME Mini S&P500 future contracts at 2,020 on a stop.”  (Current market price is 2,008).

Limit Order

1.  Buy or Sell

2.  Number of contracts

3.  Commodity

4.  Month/ Year

5.  Limit price

Buy or sell at the stated price or better.

Good only for the cur­rent day unless speci­fied other­wise.+

To enter or exit the market when price is more impor­tant than time.  To enter or exit thinly traded markets.

Buy limit usually entered below current market price.  Sell limit usually entered above current market price.

“I want to sell 10 March 2015 CME Swiss Franc futures contracts at 1.1750 on a limit.”  (Current market price is 1.1520).

 

 Not all types of orders are accepted at all exchanges—consult your broker for details. In an official exchange fast market condition, brokers are not held liable to fill any kind of order.

 Always listen carefully to the “Renesource Capital” AS IBS broker placing orders via voice desk and broker taking your order when he repeats it back to you to make sure he has understood it correctly.

+Be sure to cancel GTC (open) orders when they no longer apply.

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.