Order Types as a Function of the System or Method Being Used Many errors are made by incorrectly reversing the buy and sell orders. Before you "press the button" on electronic entries of SSF orders, double-check and triple-check the quantity as well as the order type (and price) you have entered in the computer. Your trading platform (i.e., software) may help you by asking if you are certain that your order is correct. Avoid at-the-market orders in thinly traded SSFs. Keep current on the types of orders that are acceptable in the SSF markets because this may change over time. I suggest frequent visits to the OneChicago Web site at <www.onechicago .com> or ask your broker to keep you up-to-date. Have a backup method of order entry, particularly if you day trade SSFs. After all, if you enter orders electronically and your computer or your connection line fails, you'll need a backup method for entering your orders. Make certain that the firm you are trading with has a dial-up voice number you can use in an emergency. Don't make the mistake of believing that because you use an electronic order entry, you'll automatically get fair or reasonable price execution on your orders. If you replace an order or change an existing order, be certain you indicate any change when you place your order. Most electronic order-entry procedures allow such a procedure, but you must make certain that orders have been canceled where and when necessary before you replace them. As noted earlier, the type of order you use is also a function of the system or method you are using to trade SSFs. Given the three basic categories of trading methods, the choices are often clear and concise. Here are some examples. stock investment guide ~ online trading |