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.