To start the commodity traders, we should just start from the orders of fresh traders, so as to know about the various fundamental types of input and limit orders. This article is necessary to read and understand these orders before proceeding to more advanced controls.
These orders are far complex and adaptable to a profession or business style. If used properly, can make your business more efficient and reduce their risk exposure, any way if used it incorrectly or too often can reduce their earning ability and prevent them from entering your interested job.
Let’s look at this trade busting orders or some of the trade enhancing businesses.
• Good’ Til Cancelled or GTS Order
This is “valid until canceled” order. A GTC order comprise an order type input which remains active unless operator decides to cancel. The dealer can not cancel the order if the dealer is solely responsible for its management. In summary, order would remain in the current order (or equivalent) registration of trading platform with which specified parameters are perfectly met or till order is canceled by the merchant.
This may seem rather simple. anyway, it is very usual to forget about that there is a pending order, especially if you are trading actively on foreign currencies.
When we speak from the personal experience, I had almost forgotten my order of electronic GTC. Trading scenario has altered and I was most interested in entering the trade, but trading platform memory. I was placed in an undesirable (and atlast nprofitable) trade. Then the traders use GTC sparingly and start keep a watchful eye on all pending orders.
• Good for the Day or SFM Order
This is an order entry which is the opposite of GTC up. In order to GFD which is active in the market only till end of day. Then it may be automatically canceled.
A GFD order is much useful to prevent the entry of the orders of the old and forgotten gathering dust in pending file on the trading platform of yourself. It can result in problems when parameters are for entry are not completly met during trading day on which the order was set SFM. Then order will be canceled. Many experienced trades are also missed using this command.
The first retailers to use the gluten-free diet, but should be set to indicate the parameters wide enough so that trade is entered.
• OCO or order cancels the other
This is a most difficult one of all the three levels of technology. An OCO is a mear combination of two money orders. the Two orders with price limits are here placed. One is located above market price. Another which is located below market price. Here,The trader would believe that that money will make a big move, but do not know which way this will happen.) Upon the occurrence of tax evasion and money moves, one of the order is activated. By activating one of the two orders, the other order is just automatically canceled. Thus, it allowed the cancellation of the second order.
This is something of a good kind of strategy so as to use when a rupture (movement of prices or larger) than expected. It would cover both bases for operator to enter the market and just create a profit whatever the direction of the fluctuation in currency prices. And, contrary to the GTC order, many of the commands will be obsolete, unused input pending.
Yet, OCO is the advanced type. Its usefulness is very limited, but very effective. The first retailers to use order of this type but resist the temptation to get the fancy with. The errors are easy to do and losses to follow these errors quickly.
These advanced controls can be very useful for beginning the traders. But they must bestrictly assessed. Call and complain to brokers on why trades were made without authorization or not entered during the order can beat old GTS, SFM, and also OCO orders. Also this phenomenon is surprisingly common.