Trading Market Order or At The Market.

Filed Under (Futures Trading) by RT on 18-10-2007

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!Okay, you’ve got your trading account open and sent in your money to fund your account and now you’re ready to trade. There are different types of trading orders you give your broker so that he/she knows exactly what you want to do.
Most new traders are a little on edge and excited when they call in their first order and mistakes can be made. You must be concise in your instructions to your broker. You may not always get your broker on the phone but get the order desk instead so even if your broker does know you meant buy and you said sell it will mean nothing to the order clerk.
The main thing you should know is How to Pick WINNING Futures…
Not all of the trading orders are recognized by some of the exchanges. Your broker should catch any mistakes in the order types. I will note when the CBOT and the MidAm do not recognize a trading order.
Market Order or At The Market.
“Buy one December mini Soybean Meal ‘At The Market’.” This is a panic order. You have to get into or out of the market no matter what. It sort of indicates that you haven’t really planned what it is you want to do.
When you place a ‘Market Order’ you will get a fill at what ever the current price happens to be. For example on June 12 you notice that Soybean Meal prices are climbing and you want a piece of the action. You call your broker all excited and say “Buy me a Dec. mini- Soybean Meal at the Market!” You will get a fill at the current price when your order is executed at the exchange.
Another problem with ‘At The Market’ orders is the slippage in a fast moving market can be extreme.
The chart below shows how your ‘At The Market’ order might have played out for the December Min Soybean Meal contract.

On 6/12 your ‘Market Order’ was filled at 158.50. Chart #1

Are you ready to make some easy money?
A Side Note: If you don’t want to take the time to learn your own trading method you might want to see how The 60 Minute Trader can take some of the pressure off your trading life.
A one point move in Mini Soymeal equals $5.00. It doesn’t take a big move to start making, or lose money.

Look at Chart #2. Oops. Plan your trade. Trade your plan.

As you can see the ‘At The Market’ order didn’t turn out all that great.
Remember, you don’t have to take every trade, just the good ones.
Plan your trades. Trade your plan.
This doesn’t always happen when using ‘At the Market’ orders. But when you’ve just dropped over $400 that’s not much consolation. I will cover how you might have traded this later in the book.
**Next Time** STOP ORDERS or ON A STOP

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