Comments on: When trading futures, what is the meaning of the different order types and what is the best strategy? http://www.besttradingstrategies.com/when-trading-futures-what-is-the-meaning-of-the-different-order-types-and-what-is-the-best-strategy/ Forex, Stocks, Options, Eminis and Commodities Trading Strategies Thu, 09 Sep 2010 00:08:54 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Joe K http://www.besttradingstrategies.com/when-trading-futures-what-is-the-meaning-of-the-different-order-types-and-what-is-the-best-strategy/comment-page-1/#comment-288 Joe K Sat, 10 Apr 2010 06:18:53 +0000 #comment-288 ohhh... careful... futures is one of the few places you can actually lose more than the amount you invested! If you don't know what these orders are, then I would advise that you trade stock for a while, to get used to them. Stocks are bad enough.. but futures are like stocks on crack & meth & whatever other drugs make you crazy! anyway: Stop: STOP! get me out! the price is going down and I want OUT ! ( so the price is 10 right now.. you put a Stop at 9, so that if it goes down to 5, you got out at 9! but as long as it's above $9... you stay in, and make lots of cash) Market: Slay me! take all my money, I don't care! i want it NOW! ( Market orders say - I know what I want, I want it now, just give me the best price out there, I don't care what the price is ) Limit: Wait! I know I want it... but c'mon, I don't want to pay more than $12 for it! ( Limit orders say you'll take it for $12 or less... but not a penny more ) MOC: forget it, don't do it, this one is just plain dumb... worse than Market, this is Market On Close.. ( that means I want some, but wait until the market closes and then buy me some... I REALLY don't give a hoot what it might cost me! ) Again: if you don't know what these order types are... you need to trade stocks for a year and forget about Futures for now... or you'll be forgetting about all the money you used to have..... :-) Good luck! ohhh… careful… futures is one of the few places you can actually lose more than the amount you invested!

If you don’t know what these orders are, then I would advise that you trade stock for a while, to get used to them. Stocks are bad enough.. but futures are like stocks on crack & meth & whatever other drugs make you crazy!

anyway:

Stop: STOP! get me out! the price is going down and I want OUT ! ( so the price is 10 right now.. you put a Stop at 9, so that if it goes down to 5, you got out at 9! but as long as it’s above $9… you stay in, and make lots of cash)

Market: Slay me! take all my money, I don’t care! i want it NOW! ( Market orders say – I know what I want, I want it now, just give me the best price out there, I don’t care what the price is )

Limit: Wait! I know I want it… but c’mon, I don’t want to pay more than $12 for it! ( Limit orders say you’ll take it for $12 or less… but not a penny more )

MOC: forget it, don’t do it, this one is just plain dumb… worse than Market, this is Market On Close.. ( that means I want some, but wait until the market closes and then buy me some… I REALLY don’t give a hoot what it might cost me! )

Again: if you don’t know what these order types are… you need to trade stocks for a year and forget about Futures for now… or you’ll be forgetting about all the money you used to have….. :-)

Good luck!

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