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5 Most-Used Futures Trading Orders

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Futures orders are sets of instructions used by futures traders to execute their trades. Each futures order specifies the entry price and other trade conditions that must be met in order to enter the futures trade.

As there are many types of futures orders to choose from, futures traders should consider the ones that meet his trading needs and the market conditions at the time the order takes place. This article will explore the commonly used futures orders.

Market Order

Market order is the most common orders of all. It is an order to buy or sell futures contracts at the best available market price.

Limit Order

Limit order is an order to buy or sell futures contracts at a specified price. A limit to buy is placed below the current market price, while a limit to sell is placed above the current market price.

Stop Order

Stop order is an order to automatically sell your position when it reaches a specific price. It is commonly used to protect traders from making a big loss.

Good-till-Canceled (GTC)

Good –till-canceled is an order to buy or sell futures contracts at a fixed price that will be maintained until it is cancelled or the trade is executed. An order with no good-till-canceled order will expire at the end of the trading day it was placed.

Good-till-Date (GTD)

Good-till-date is an order to buy or sell futures contracts at a fixed price that will be maintained until a specified date or the trade is executed. The order will be cancelled when the specified date has passed.

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Wan Zuraiha Wan Zakaria is a staff writer at Oriental Pacific Futures (OPF) where she writes on investment and trading. OPF is a futures and options broker based in Kuala Lumpur, Malaysia and provides electronic trading, brokerage and clearing services to retail and institutional traders since 2007. OPF is licensed under the Securities Commissions of Malaysia and offers cash-settled derivatives instruments traded on Bursa Malaysia, as well as select major derivatives exchanges around the world.

Oriental Pacific Futures articles published on the Corporate Website (www.opf.com.my) may be reprinted, reposted or distributed free for educational purposes only on the condition that Oriental Pacific Futures and the Corporate Website link information http://www.opf.com.my are included. However, other organizations are invited to link to articles that are available in the public area of the Oriental Pacific Futures’ Learning Resources website. No additional permission is needed for such a link.

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