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Order Types

Clearing & Membership » Order Types

Order Types

Market Orders

A market order is an order which does not specify a price limit; rather market orders are matched to the best available contra-side bid or offer.

Stop Orders

Stop orders are orders that create market orders when the specified trigger price is reached. As market orders, stop orders are not visible in the order book for any market participant

A buy stop order is an order placed at a price above the market that will trigger the creation of a market buy order when the market trades at the stop price or higher

A sell stop order is placed below the market and creates a market order if the market trades at or below the stop price.

There is no guarantee that an order triggered by a stop will be filled at the stop price. Instead, it is treated the same as any other market order. A stop is only activated when an actual trade takes place that is at or through the stop. Even if both the bid and offer are through the stop price (for example, when both the bid and the offer are higher than the buy stop price) remains executed at next traded price.

Stop orders are often referred to as stop-loss orders in that they are often used to protect a trader's position from deteriorating beyond a certain point and stopping further loss. Positions can be initiated or closed out using stop orders. Stops are available on most futures.

Limit Orders

The objective of MEX is to organize trading in such a way that possibility of defaults is almost eliminated. To achieve this, MEX has adopted various means as follows.

  • Unrestricted Limit Order

    These orders are used in all markets and have a duration attached to them.

    • Good-for-Day (Day order))is also known as a day order. All orders are assumed to be Day order unless otherwise specified. The validity of a Day order, order ends at the close of that day's Trading Period. Day orders entered during the Post-Trading Period of a given trading day will be valid for the following trading day.
    • Good-till-Cancelled (GTC)) A GTC order is a Limit Order to buy or sell at a specified price and remains active from one day to the next until the order is either executed or canceled by the trader.
    • Good-till-Friday (GTF)carries up to weekly close of market (Friday) from entry on which the order is automatically cancelled.
    • One-cancels-the-other order (OCO) an order stipulating that if one part of the order is executed, then the other part is automatically canceled.
    • Market on Close (MOC) Order: A MOC order is an order which is to be executed as a market order in the closing minute of trading and as close to the closing price as possible. If not so executed, it is to be treated as cancelled.

    Restricted Limit Orders

    • Immediate-or-Cancel (IOC) is to be filled immediately, either completely or to the extent possible; the portion that cannot be filled immediately is cancelled. That type of orders are not separate than above mentioned limit orders. As per their filling capability in market these orders are regarded as IOC orders.

    Closing session: only orders may be entered during the entire trading day, but are only active during the closing phase of the current business day. Price reasonability shall be checked automatically during the order entry. This restriction type applies only to orders for price/time matched futures.