Place Commodity Orders by Indicating What Type You Prefer
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.