When you place a commodity order, one key piece of information you need to indicate is the order type. The type defines how you want your order to be placed and executed.

  • Fill or Kill (FOK): Your order is to be filled right away at a specific price. If a matching offer is not found within three attempts, your order will be cancelled, or “killed.”

  • Limit (LMT): Your order is to be filled only at a specified price or better. If you’re on the buy side of a transaction, you want your limit buy order placed at or below the market price. If you’re on the sell side, you want your limit sell order at or above market price.

  • Market (MKT): Your order will be filled at the current market price.

  • Market if Touched (MIT): You specify the price at which you want to buy or sell a commodity. When that price is reached (or “touched”), your order is automatically filled at the current market price. A buy MIT order is placed below the market; a sell MIT order is placed above the market.

  • Market on Close (MOC): You select a specific time to execute your order, and your order will be executed at whatever price that particular commodity is commanding at the end of the trading session.

  • Stop (STP): Your order is placed when trading occurs at or through a specified price. A buy stop order is placed above the market, and a sell stop order is placed below market levels.

  • Stop Close Only (SCO): Your stop order will be executed only at the closing of trading and only if the closing trading range is at or through your designated stop price.

  • Stop Limit (STL): After the stop price is reached, the order will become a limit order and the transaction will be executed only if the specified price at which you want the order to go through has been reached.