Managing Futures Trading And Orders

Garnering good profits out of investments in futures largely rests on deftness in trading and order execution

. Usually range of possible orders in commodity futures and options is greater than normal stocks and order execution in futures trading requires greater control.

Futures brokers maintain a list of orders they normally accept, though a wide range of orders can be executed. While giving trading orders to your futures broker make sure you have correctly specified the below aspects:

Exchange : Clearly specify the exchange where you wish to place the order, as many commodities trade on a number of exchanges, such details holds the key.

Quantity : The number of contracts or lots you wish to trade.

Buy / Sell : Don't overlook this most crucial trading activity.

Price and Time : State your price targets and also instructions relating to timing of execution.

Time and price factors play a very critical role in order execution and also to take advantage of the right market condition. Let's see a few time and price orders'.

Timing of Orders

Day : A day order remains good only during the trading hours of the day and if not executed, is cancelled at the end of the trading day.

Good till Cancelled (GTC) : This type of order remains in effect till it is executed or till the contract expires.

Good through Date : Such orders stay in effect till the end of specified trading day. Ex: good for the week, good for the month etc.

Immediate or Cancel (IOC) : These orders are immediately executed either in whole or part. The unexecuted part usually gets cancelled automatically. Another form of the IOC is Fill or Kill (FOK), in which the entire order must be executed immediately, if not the order stands cancelled.

Pricing of Orders

Market : It is the most common form of orders and requires to be executed at the best price prevailing in the market.

Limit : You can specify the maximum buying price or a minimum selling price, thereby controlling your target price. Ex: For buy order, you can specify the limit below the current market price and for a sell order; you can limit your price above the market price.

Futures trading is made easy with technology at your aid to access instant market information and also to place electronic orders. Pin your attention on above crucial order placement and execution tips to gain maximum benefits.

by: kellyprice1225

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