The Market Order
A market order is the simplest of orders and is used when the greatest priority
of the customer is for immediate execution. A market order instructs the broker
to buy or sell contracts immediately at the market price, the best possible price
for immediate execution. Market orders are the easiest way to enter or exit a market
since the customer receives immediate execution - and must pay or receive whatever
price is necessary for immediate execution.
The Limit Order
A limit order is like a market order with one exception, price takes the priority.
For limit orders, the customer includes, along with the type and quantity of contracts
to purchase, a maximum price to pay for the contracts. A customer will use a limit
buy order if they desire to buy the contract, but at a specified price - the limit
price. This price is always below the prevailing market price. The same is for a
Sell Limit, ie if the customer wants to sell when a specified price is reaced which
is higher than the current price.
The Stop Order
A stop order, like a limit order, is only executed once a specific price is reached.
The limit order is typically used to enter into a position at a specific price,
a stop order is usually used to exit or close a position at a specific price. A
stop order to buy has a price that is above the market price. Similarly, a stop
order to sell has a price that is below the market price. Good 'Till Cancelled (GTC)
A GTC order remains active in the market until you decide to cancel it. Ellipsys
will not cancel the order at any time. Therefore it's your responsibility to remember
that you have the order scheduled.
Good for the Day (GFD)
A GFD order remains active in the market until the end of the trading day. Because
foreign exchange is a 24-hour market, this usually means U.S. markets close. However
the system accepts mostly GTC orders so you need to specify of your order is GFD.