SERIES3 Flashcards
TYPES OF ORDERS
STOP LIMIT ORDER
STOP LIMIT:Really two orders entered in one ticket ,first a STOP ORDER ,once stop price been reached,rather than turning into MARKET ORDER ,it will turn a LIMIT ORDER,then only can be executed at LIMIT PRICE or better
MIT (MARKET IF TOUCHED)ORDER
MIT ORDER works like a STOP ORDER,once MIT price reached, order becomes MARKET ORDER, Order not executed when MARKET hits price ,but activated then becomes MARKET ORDER & executed MIT BUY: Becomes MARKET ORDER contract Sells or is Offered at or Below order Price. MIT SELLS:Becomes MARKET ORDER Contract Sells or is Bid at or Above order Price. MIT used on Futures not on Stocks or Bonds
STOP ORDERS
STOP ORDERS:Order becomes a MARKET ORDER to Buy or Sell once Future contract reaches price specified in order, STOP ORDER not executed when Market hits STOP Price ,but Activated then becomes MARKET ORDER and Executed — Used to limit losses or protect profit. STOP ORDER TO BUY : Becomes MARKET Order when Sells or Bid at or Above STOP Price. STOP ORDER TO SELL :Becomes MARKET Order when Sells or is Offered at or Below STOP Price (AKA Protective STOP or TRAILING STOP)
LIMIT ORDERS
LIMIT ORDERS : Entered at specific Price or Better (OB) LIMIT SELL: May be Executed if Price goes Up to LIMIT PRICE. or Above. LIMIT BUY: May only be Executed if Price goes Down to Limit Price or Below. Market may reach LIMIT PRICE and Broker may Fail to Execute without Fault ,since MARKET could change before executed ,Customer may Not be Told Order has been Filled ,Simply because Ticker indicated (OB). (OB) AKA -LIMIT ORDERS —-Resting Orders AKA LIMIT ORDERS
ON THE CLOSE OR MARKET CLOSE
ON THE CLOSE OR MARKET CLOSE- Willbe Executed at End of Trading ,Within Closing Range ,Order Executed to Extent possible ,does Not Guarantee Entire Order Willbe executed, Remaining Partial Orders are Canceled ,They do not remain Open Orders to following days trading
UP LIMIT OR DOWN LIMIT
When Market trades either UPLIMIT or DOWN LIMIT it can Continue to Trade ,But will only Trade Within Days Price Limit Range
GIVE UP ORDERS
GIVE UP ORDERS:Orders Executed by One Broker for the Client of Another Broker
ONE CANCELS THE OTHER ORDER OCO
ONE CANCELS THE OTHER ORDER OCO:Order where Execution off one side of an Order Cancels Other Side ,Where Two Orders are entered at same Time.
FILLOR KILL FOK
FILL OR KILL FOK:Order must be Filled at Specific Price in its Entirety or Cancelled Immediately, Type of LIMIT ORDER
IMMEDIATE OR CANCEL IOC
IMMEDIATE IR CANCEL ORDER IOC:Order musr be Filled in While or in Part Immediately or Cancelled, Customer willing to take Partial Fill
DAY ORDERS
DAY ORDERS:Expires End Of Day ,Does not Have Expiration Time on it
GOOD TIL CANCEL ORDER GTC
GOOD TIL CANCEL ORDERS GTC:Executed any time until Customer Cancels Order or Contract Expires
SHORT COVERING
SHORT COVERING:Refers to Buying Futures to Close Out an Existing Short Position
TERMS TO ELIMINATE EXISTING POSITIONS. REMEMBER LONG =BUY= - SHORT=SELL= +
TERMS TO ELIMINATE EXISTING POSITIONS:Liquidate -Close-Offset-Lifted-Cover. Remember /Long =Buy=- Short=Sell=+
BL/SS. SELL LIMIT / BUY STOP ^ MARKET PRICE. BUY LIMIT / SELL STOP V
STOP ORDER TO SELL- STOP LOSS ORDERS to Liquidate Existing Position. STOP LOSS ORDERS do not assure his loss will only be a certain amount. Customer Not Guaranteed Order be Filled @Stop Price. Basic Spread Order is acceptable on CBOT,But not a STOP SPREAD POSITION. Important Factor in Stop is VOLATILITY
