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Stop: when you click on this button you are prompted to enter the number of contracts and the price at which you want the order to be activated. Click on OK to enter the order. A stop order becomes a market order when the specified price trades. A buy stop is placed above the current price and a sell stop is placed below the current price. So if the current price is 5645 I could place a buy stop at 5655 and it will be triggered if and when the market trades at 5655 and/or a sell stop at 5633, which will be triggered if and when the market trades at 5633. Market if touched (MIT): when you click on this button you are prompted to enter the number of contracts and the price at which you want the order to be activated. Click on OK to enter the order. The MIT is similar to the stop order except in reverse, i.e. a buy MIT is placed below the current price and a sell MIT is placed above the current price. You will notice that there is no button for Limit orders. In the real market a limit order will not necessarily be filled even if the market trades at the limit order price, but in the simulator it always will be filled if the market trades at the limit order price. Imagine that the market is currently trading at 5680 and you place a limit order to buy 5665 (or better). The market then falls to 5665, and it trades just 2 contracts at 5665 and then moves higher. In the real market you would probably not have been filled as only two contracts traded, but the simulator will assume that you have been filled. An MIT order is similar to a limit order, except that when the specified price trades your order becomes a market order, so you will definitely be filled at the best available price when the order is triggered. So I have omitted the Limit order, as the simulator is unable to accurately reflect the outcome of limit orders. In practice, though, an MIT has the same effect as a limit order. 84 |
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