Commodity trading order types

The various fields given in Order Entry for Commodity Market are as follows:. Click on 'Ok' button to place the order. Alternatively, you can click on 'Cancel' button to go back and make changes in the order. Exchange - Choose the exchange where you want to place the current order. Symbol - Enter the internal symbol of the commodity underlying in which you would like to trade. You need to first use "Magnifier" icon to find and update the internal symbol of the desired scrip.

Order (exchange)

Order Types - market, limit, stop, etc Placing an Option order Placing a Futures Spread order.. Cancel a working order Avoiding common "Pitfalls" Exchange Information - different exchanges accept different order types The trade desk phone number is 1 "I have a futures order.

This is John Smith, my account number is Buy 3 May Corn, stop. There are sound, practical reasons for presenting your orders in a particular way. First, this process is the best one we know of in terms of preventing errors on the parts of both the customer and the order specialist. Second, with a solid understanding of order types and how to place them, you can increase your ability to act and react in varying market conditions. Specify if it is a futures or options order.

Day Orders: Day orders are good until the end of the current trading session. If, after the floor broker receives your instructions, your order is unable to be filled, it is cancelled immediately after the market closes.

It will not be resubmitted to the filling broker for any subsequent trading sessions. Always express quantity in terms of the number of contracts you want traded.

Specify the year if you will be trading a contract that is not deliverable until the next calendar year or beyond. If you will not be trading on the primary exchange, please let us know at which exchange you want it traded. A table of the acceptable order types for various markets is included at the end of this guide.

Repeating back an order: Your order specialist will repeat your order back to you. Listen carefully to the order when it is repeated back to you; the order will be placed exactly as it is repeated to you. This is the time to make any corrections and if necessary, ask your order specialist to repeat the order back to you a second or third time.

Do not specify a price; rather, say "at the market". To place such an order, a trader might say: "I have a futures order. This is John Smith, account Buy 3 May Corn at the Market. Use this type of order when you want to be filled only at a specified price or better. A limit buy order is placed at or below the current market price, while a limit sell order is placed at or above the current price.

Within certain caveats, you are guaranteed a fill if the market trades through your price. If the market merely trades at your price, you are not guaranteed a fill.

Occasionally, a customer will place a limit order when the market is currently trading at or through their limit price. This type of order is called an "Or Better" order because the designated price will be flagged with an "OB" to signal the floor broker that your order, which might look suspiciously like a stop, is in fact, a limit order.

Chances are, your order specialist will want to confirm the same thing with you. Place this order exactly as you would any limit order adding "or better" after the price. Use this order to make sure you get filled if the market hits your price. It becomes a market order when the market hits your specified price. As with all markets orders, you will be filled at the best prevailing price when your MIT is elected; thus, you will be filled, although not necessarily at your stipulated price.

A buy stop order is placed above the market and a sell stop order is placed below the market. Once the stop price is touched, the order is treated like a market order and will be filled at the best possible price. An order which becomes a market order when trading occurs at or through your specified price.

An acceptable buy stop is placed above the current price and is elected when the market trades or is bid at or above your stop price. A sell stop is appropriately placed below the current market and becomes a market order when the market trades or is offered at or below your price.

The stop order is often referred to as a "stop loss" referring to an acknowledgement that you are wrong on the market direction and want to get out of the market before it moves any further against you.

While this analogy can help you remember to place buy stops above and sell stops below the current price, the term "stop loss" is actually something of a misnomer.

Although stops have been used to exit a position when it has reached a certain point against you, the stop is also commonly used to protect profits or even enter new positions. Use this order when you want your stop to be filled only if elected in the closing range. Since this order can only be filled during the closing range, the price you stipulate may be anywhere in relation to the current market.

It is similar to a stop order with the only difference being that it must be elected and filled during the closing range usually the last seconds trading. Use this order when you want to give the floor broker a limit as to how far through your stop he may fill your order. When you place this order, two prices must be stipulated: the stop price and the limit price.

When your stop is elected, the broker will fill your order if it is possible to do so without exceeding your limit price. If the broker is unable to do so, the limit portion of your order goes into effect. Now, the market must turn around and surpass your limit price in order to be filled, just like a regular limit order. For example: "I have a futures order. Buy 5 June Canadian Dollar at stop, limit. Use this order if you want to be filled at the market at any time during the close range usually the last seconds of trading.

This order instructs the floor broker to immediately execute your order at a specified price or to cancel it if unable to do so. The price should be near enough to the current market price so as to make immediate execution a realistic possibility. When the floor broker receives your order, he will immediately bid if you are buying or offer if you are selling your price at least three times. If a trade occurs, you will be notified right away of your fill.

If no trade occurs, the order is cancelled killed on the spot and the broker's obligation to that order ends. To place such an order when the market is trading at , you would instruct the order specialist to "Sell 5 June Canadian Dollar at Fill or Kill". This order actually gives two alternative instructions in which the execution of either one automatically cancels the other.

For example, suppose you are long three June Canadian Dollar at You want to get out of the market if it declines to , but what you'd really like is to take profits at The broker will fill whichever portion of your order he is able to first, simultaneously canceling the other portion. Thus, if the market rises and the limit portion of your order is filled first, the stop is automatically cancelled. If your stop is elected before your limit can be executed, the broker will fill your stop and cancel your limit.

Also, spread markets are traded separately from the regular markets. Floor spread brokers bid and offer the spread premiums, which in some cases vary widely from the difference between the last quotes in the individual markets. How To Place Commodity Trades. Legal Disclosures and Full Disclaimers Privacy Policy Futures and Options trading involves a substantial risk of loss and is not suitable for all investors.

Past performance is not indicative of future results. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.

FarrDirect, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. FarrDirect is a dba of Ironbeam, Inc. How to phone in your orders at the trade desk Click to Top. Placing an Options Order You'll follow essentially the same procedure when you're placing an options order — but you'll include some additional information that's specific to options.

Buy 8 December Gold calls at 1. Spread Orders A Spread order is the simultaneous purchase and sale of the same or related commodities. Cancel a Working Order You may cancel any order which has not yet been filled, in other words you may for some reason want to cancel a working order. There are two methods in which to cancel an order.

The method you select will vary depending on whether you want to cancel it outright or merely change it. Straight Cancel: If you have a working order and don't want it anymore, you would choose this method. You are telling the floor broker not to work the order anymore — you do not want it filled.

If your order has not been filled by the time your straight cancel request gets to the pit, the broker will pull the order from his deck and return it as cancelled. If your instruction to straight cancel reaches the floor broker after the order has already been filled, it will be returned as "Too Late To Cancel" TLTC and you will be notified of your fill.

To place a straight cancel, give your name and account number and tell the order specialist that you want to straight cancel an order. Specify if it is a day or GTC order and give the ticket number and the market you are trading. Example: "This is John Smith, Account To cancel replace an order, give your name and account number and tell the order specialist that you want to cancel replace an order. Specify it is a day or GTC order and give the ticket number and the market you are trading.

Avoiding Common Pitfalls 1. If you do not specify your order as GTC, it will be placed as a day order and canceled at the end of the trading session. Be very clear when placing your orders. Our order specialists are eager to please. If you have any questions, please do no hesitate to ask.

One Cancels the Other (OCO). GTC (Good 'Till Canceled).

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An order is an instruction to buy or sell on a trading venue such as a stock market , bond market , commodity market , financial derivative market or cryptocurrency exchange. These instructions can be simple or complicated, and can be sent to either a broker or directly to a trading venue via direct market access.

An order is an investor's instructions to a broker or brokerage firm to purchase or sell a security on the investor's behalf. Orders are typically placed over the phone or online through a trading platform. Orders fall into different available types which allow investors to place restrictions on their orders affecting the price and time at which the order can be executed.

Order Types

Order Types - market, limit, stop, etc Placing an Option order Placing a Futures Spread order.. Cancel a working order Avoiding common "Pitfalls"

New Order (Commodity)

Commodities are an important aspect of most American's daily life. A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Traditional examples of commodities include grains, gold, beef, oil, and natural gas. For investors, commodities can be an important way to diversify their portfolio beyond traditional securities. Because the prices of commodities tend to move in opposition to stocks, some investors also rely on commodities during periods of market volatility. In the past, commodities trading required significant amounts of time, money, and expertise, and was primarily limited to professional traders. Today, there are more options for participating in the commodity markets. Trading commodities is an ancient profession with a longer history than the trading of stocks and bonds. The rise of many empires can be directly linked to their ability to create complex trading systems and facilitate the exchange of commodities. In modern times, commodities are still exchanged throughout the world.

A review of the types of orders a futures trader can place.

By Amine Bouchentouf. One of the most important pieces of information you need to indicate in a commodity transaction is the order type.

Types of Commodity Orders

Get an understanding of the various order types. There are many types of participants in the stock market. Clients can be categorized as active traders or investors, passive investors, margin-money based traders, intraday traders, delivery-based traders or investors. Not all of them are the same and neither are their requirements for participation in the stock market. These include orders which are market price or stop loss based, super multiple orders based on margin finance, order execution types which are good for the day or good till canceled, immediate or cancel type, aftermarket orders, stop loss orders, or basket orders. Also, termed as a normal Order, Market Order is used to buy or sell a stock at the current market price in any trading session. Based on the price at any particular time in a session, clients can buy or sell a stock in a normal manner, without using any other specific options provided by the broker. Shares bought through this order type can be held for the purpose of either intraday trading or delivery trading. An order type which is selected to buy or sell any stock, at a very specific price as determined by the client is termed as a Limit Order. As explained in the earlier section in detail, a client order placement without the availability of the full amount of the stocks being bought is called Margin Trading Order and the amount made available by the broker to buy the shares is called Margin Money. By considering the earlier existing shares or cash in the account as a collateral, the broker provides the loan to buy shares. In case of intraday trading, since the positions are squared off, only the profit or loss at the end of trading day is indicated.

Federal government websites often end in. The site is secure. Please enter some keywords to search. Types of Orders. The most common types of orders are market orders, limit orders, and stop-loss orders.