Commodity Trading Advisor (CTA)

However, consider the same scenario with a different outcome. You enter your bid at 406.45 FOK. The tape reads 406.55 when you enter your order. The ticks then go as follows: 406.55.. .406.50.. .406.55.. . 406.50.. .406.50.. .406.55B.. .406.55.. .406.60.. .406.65.. .406.60.. .406.55.. . 406.60.. .406.65.. .406.70.. .406.75 and so on. The market never even comes close to your bid, and the order is returned killed. What does this mean? It indicates a market with good demand. It suggests that you had better get on board quickly.

You may even want to use a market order to do so. w MIT orders are acceptable but not always efficient. They are good for trading within a support/resistance channel, but they will cost you ticks. OCO orders, where accepted, are very helpful. They will help you bracket the market with different strategies and should be used wherever needed. Specify first open only.

Some New York markets have staggered openings. In these markets each contract month is opened individually in chronological order, traded for a few minutes, and then closed so that another month may be opened. Once the process has been completed all months are opened again at the same time. The same procedure is used for closing. Should you need to get into one of these markets on the open, specify that you want your order good for the first open only.

All too often the second opening price is distinctly different from the first open. This can cost you money. w Insist on prompt reporting of order fills. It is absolutely necessary for you to know when you've been filled and when you've not been filled. You must be strict with your broker in demanding fills back as soon as possible. Do not accept excuses, particularly in currencies, T-bonds, S&P, and petroleum futures, where flash fills are easily given.

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