More Orders

This is the fourth in a series of articles that started Monday, October 23, 2006 with an article entitled “Limit Orders & Market Orders”.

Here are some more order types. Except for the first two, the remainder are not used in trading eMini Stock Index Futures and appear here only as a matter of historical curiosity.

Cancel-Replace Orders

This is sometimes called “Cancel Former Order”. This is an order that has the effect of canceling a previous order and replacing it. For example, let’s say you want to sell at 1350. But later you change your mind and decide to sell at 1349. To do that you send a Cancel-Replace Order in which you cancel your first order and substitute the new order.

Good Till Cancelled (GTC) and Good For The Day (Day) Orders

My broker says that all orders for trading eMini Stock Index Futures are only “Good for the Day”. That means all unfilled orders expire at 4:15 p.m. ET (New York time) each day.

But according to a brochure from the exchange where the eMini’s are traded, namely the Chicago Mercantile Exchange, they do allow GTC Orders. Therefore, you should check your account everyday after 4:15 p.m. ET to ensure that your orders actually expired, if that is what you expect.

Fill or Kill Orders (FOK)

FOK is not a misspelling of an expletive often heard around institutional trading departments.

FOK orders were used when trading was done through live floor traders. It’s obsolete and not used in trading eMini Stock Index Futures.

According to a CME brochure, “A FOK order instructs the broker to make one attempt to bid or offer the order and, if not filled immediately, cancel the order. The customer placing the order may be on the telephone while this attempt is made, thereby making it necessary for the runner to wait for the broker to try to fill the order and then notify the phone clerk of its status. FOK orders are written very close to current trading levels and are intended to be sent to the trading floor without delay.”

Disregard Tape Order (DRT)

DRT Orders are not used in trading eMini Stock Index Futures.

According to a CME brochure, “A DRT order is a discretionary order. These orders may also be referred to as Market Not Held orders. The filling broker treats a DRT as a special order, using his expertise to try to obtain the best possible fill. The broker can take his time in filling a discretionary order.”

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Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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