How To Place Orders

Order placement is actually not that complicated. It just takes time to get used to the way you place the order. Once you learn the steps to placing the order and use these steps a few times, it becomes second nature.

The following types of orders are the most commonly used:

Above The Market
Buy Stop, Sell MIT, Sell Limit, Buy Stop Limit
-----------------------------------------------------Market Price
Sell Stop, Buy MIT, Buy Limit, Sell Stop Limit
Below The Market

*Assume Dollar Index is trading at 95.50.
Market Order: A market will be executed at the best available price as soon as the floor broker receives the order. To place such order call your trading desk and say:

To Buy:"This is John Doe acc#1234 buy one June Dollar Index at the market."
To Sell:"This is John Doe acc#1234 sell one June Dollar Index at the market."

Limit Order: This type of order is only used when you want to be filled at a specific price or better. A Limit order to buy is always placed below the market(current price) and a limit order to sell is always placed above the market. If the market touches your price is not guaranteed to you will get filled, on the other hand if the market trades through your price than you are guaranteed a fill. To place such order:

To Buy:"This is John Doe acc#1234 buy one June Dollar Index at 95.00 or lower."
To Sell:"This is John Doe acc#1234 sell one June Dollar Index at 96.00 or higher."
If the market is trading at your price or through it, instead of saying higher or lower simply say"or better."

Market If Touched(MIT): MIT orders are used when the market price touches your price and your order becomes a market order to buy or sell. A buy MIT is place below the market and a sell MIT is placed above the market.

To Buy:"This is John Doe acc#1234 buy one June Dollar Index at 95.00 MIT."
To Sell:"This is John Doe acc#1234 sell one June Dollar Index at 96.00 MIT."

Stop Order: Becomes a market order when trading occurs at or through your price. A sell stop is placed below the market price and a buy stop is placed above the market price.

To Buy:"This is John Doe acc#1234 buy one June Dollar Index at 96.00 Stop."
To Sell:"This is John Doe acc#1234 sell one June Dollar Index at 95.00 Stop."