Different exchanges accept different order types. All order types are not accepted by all exchanges. This document lists order types accepted by Mex Cambodia.
The types of orders most commonly used are briefly described below:
MARKET ORDER: The market order is the most frequently used order. In most instances it assures you of getting a position and eliminates "chasing" a market to get in or out of a position. The market order is executed at the best possible price obtainable at the time the order reaches the trading pit.
LIMIT ORDER: The limit order is an order to buy or sell at a designated price. Limit Orders to buy are placed below the market while limit orders to sell are placed above the market. Since the market may never get high enough or low enough to trigger a limit order, a customer may miss the market if he uses a limit order. Even though you may see the market touch your limit price several times, this does not guarantee or earn you a fill at that price.
MARKET IF TOUCHED (MIT): MITs are the opposite of stop orders. Buy MITs are placed below the market and Sell MITs are placed above the market. An MIT order is usually used to enter the market or initiate a trade. An MIT order is similar to a limit order in that a specific price is placed on the order. However, an MIT order becomes a market order once the limit price is touched or passed through. An execution may be at, above, or below the originally specified price. An MIT order will not be executed if the market fails to touch the MIT specified price.
STOP ORDER :Stop orders can be used for three purposes:
- to minimize a loss on a long or short position
- to protect a profit on an existing long or short position, or
- to initiate a new long or short position
A buy stop order is placed above the market and a sell stop 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.
STOP LIMIT ORDERS : A stop limit order lists two prices and is an attempt to gain more control over the price at which your stop is filled. The first part of the order is written like the above stop order. The second part of the order specifies a limit price. This indicates that once your stop is triggered, you do not wish to be filled beyond the limit price. Care should be taken when considering stop limit orders especially when trying to exit a position because of the possibility of not being filled even though the stop portion of the order is elected.
There is no Stop Limit order without a second price. If your order can not be filled by the floor broker immediately at the Stop price, it becomes a straight limit order at the stop price.
MARKET ON OPENING : This is an order that you wish to be executed during the opening range of trading at the best possible price obtainable within the opening range. Not all exchanges recognize this type of order. One Exchange does not recognize this type of order is Chicago Board of Trade.
MARKET ON CLOSE (MOC) : This is an order that will be filled during the period designated by the exchange as the close at whatever price is available. A floor broker reserves the right to refuse an MOC order up to fifteen (15) minutes before the close depending upon market conditions.
ONE CANCELS THE OTHER (OCO) : This is a combination of two orders written on one order ticket. This instructs our floor personnel that once one side of the order is filled, the remaining side of the order should be canceled. By placing both instructions on one order, rather than two separate orders, you eliminate the possibility of a double fill. (This order is not acceptable on all exchanges.) We will not routinely accept cancel / replace of an OCO order within fifteen (15) minutes of the close of trading. We will accept canceling both sides during this period and replacing with either MOC or market orders, but can not guarantee against a double fill. In addition, an existing order may not be canceled / replaced to an OCO; the original order must be canceled and a new order entered. To prevent potential double fills, please ask to be confirmed out before the OCO is placed.