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-----Original Message-----
From: Phil <rhodes@xxxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Sunday, December 28, 1997 12:55 AM
Subject: Orders to Brokers
> I would like some comments on how to give orders for futures and
>options to a broker from the situations below!
>
> 1. Futures- If say corn is at 270 and I want to buy it at 265 what would
>the order be?
> 2. Futures- If say corn is at 260 and I want to buy it at 265 what would
>the order be?
> 3. Options- If corn option is trading at 5 and I want to buy it at 4
what
>would the order be?
> 4. Options- If corn option is trading at 3 and I want to buy it at 4
what
>would the order be?
> On 1 and 3 the price is above and I don't want to buy until it drops to
>my price then get in.
> On 2 and 4 the price is below and I don't want to buy until it goes up
to
>my prices then get in.
>
> This is probably a stupid question but I would like to here the answers.
> Thank You,
> Phil
>
>Phil:
This is not a stupid question at all, as the subject of placing the
correct
order using the appropriate language can be extremely confusing.
For your orders, use a "limit or better" if the current price is above
your
entry objective price and you want to go long, e.g. "buy one corn at 265
limit or
better";
For your orders when the price is below where you are looking to
enter and you are going long, you would place a "buy stop", e.g. "I want
to buy one corn at 265 buy-stop. "
Regards,
jdfo
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