ONLINE trading options

Nick79 · 1 ONLINE trading options Sat May 26, 2012 10:12 am

Nick79

Equity Analytic

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Please explain the following options in the online trading screen, under buy/sell menu.

1.What is the difference between Limit order & market order ( under Order type) ?
2.wht are Day .GTC , IOC ,FOK , GTD , 60 ( Under "Good Till") ?

Quibit · 2 Re: ONLINE trading options Sat May 26, 2012 10:44 am

Quibit

Senior Vice President - Equity Analytics

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http://www.cse.lk/270808/pdf/web_ats_rules/ATS-RULES.pdf

1.4 Order Attributes

Orders can have the following attributes.
1. Qualifiers
2. Time in force
3. Minimum fill quantity
4. Disclosed quantity
5. Named orders

These attributes can be used by the brokers’ to tune the execution strategy of an order to a limited degree.

1.4.1 Order Qualifiers
Order qualifiers modify the execution conditions of an order based on volume, time and price constraints.

1.4.1.1 No qualifiers
Orders will be executed at a specified price or better. If a partial execution occurs the remainder will be added to the order book and will remain in the order book till executed, cancelled, or expired.

1.4.1.2 Fill or Kill (FOK)
Requires the immediate purchase or sale of a specified quantity, at a given price or better. If the whole order cannot be filled immediately, it is killed. (These orders do not get entered into the order book). FOK orders cannot be entered into the system during pre-open.

1.4.1.3 Immediate or Cancel (IOC)
Requires immediate purchase or sale of a specified quantity at a specified price or better for all or part of the order. If no immediate execution occurs the order is cancelled. If an immediate partial execution occurs the remainder is immediately cancelled. IOC orders cannot be entered into the system during pre-open.

1.4.2 Time in Force (TIF)
Time in force choices limit the lifetime of an order in the book.

1.4.2.1 Good till cancel (GTC)
The order remains valid till cancelled or for 5 market days.

1.4.2.2 Good till day (GTD)
The order is cancelled at the end of the specified trading day if unexecuted (maximum 5 days).

1.4.2.3 Good till time (GTT)
The order is cancelled at the end of the specified time during trading day if unexecuted.

1.4.2.4 Day order (DAY)
The order is cancelled at the end of the trading day.

1.4.2.5 Open
The order will only take part in the open auction. If the order is not executed fully, it will expire after the open auction.