This article is for you whether you trade S&P 500 e-mini futures, Nasdaq-100 e-mini futures, stocks, or options. It covers the various methods available to buy and sell assets on the NinjaTrader platform.
NinjaTrader has six graphical interfaces for managing orders, positions, and ATM strategies. These interfaces offer comprehensive functionality for managing orders, positions, and discretionary exit and stop strategies in a highly visual and efficient manner. If you are primarily a discretionary trader, you will spend most of your time in one of these six interfaces.
- Order Ticket
- FX Pro
- FX Board
- Chart Trader
- Basic Entry
Although the Basic Entry, Chart Trader, Order Ticket, and SuperDOM interfaces can be used to trade any of NinjaTrader’s supported asset classes, the Basic Entry window is designed for trading equities, the SuperDOM for trading futures, and the FX Pro and FX Board for trading FOREX and CFD instruments only.
A mouse with left, right, and middle buttons are required to fully utilize all order entry windows.
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Below are the six primary order entry categories that are available.
The market order is the most common type of order. It’s a good order to use after you’ve decided whether to open or close a position. It can prevent the customer from chasing a market to enter or exit a position. The market order is filled at the best available price when the order reaches the trading pit.
The limit order is a basic order type that allows you to buy or sell at a specific price. Limit orders for purchases are placed below the market, while limit orders for sales are placed above the market. Because the market may never get high enough or low enough to trigger a limit order, a customer who uses a limit order may miss the market. (Even if the market repeatedly touches a limit price, this does not guarantee or earn the customer a fill at that price.)
- When buying, a Buy Limit occurs when the order price is lower than (below) the current market price.
- As an example, if the market is trading at 1602.25, buy the 1 December E-mini S&P 500 (ES) on a limit order at 1602.25 (or better…fill at 1602.25, or lower). Orders can only be filled if the stated price (1602.25) or less is paid (better).
- When selling, a Sell Limit occurs when the order price is greater than (or greater than) the current market price.
- As an example, with the market at 1609.75, sell the 1 December E-mini S&P 500 (ES) on a limit order at 1609.75 (or better…fill at 1609.75 or lower). Only available at the stated price (1609.75) or higher (better).
Stop orders can be used in these three ways:
- to reduce the risk of a loss on a long or short position.
- to protect a profit on a previously established long or short position; or
- to open a new long or short position
A buy stop order is placed above the market, while a sell stop order is placed below it. When the stop price is reached, the order is treated as a market order and is filled at the best price possible.
- When buying, a Buy Stop occurs when the order price is greater than the current market price.
- Scenario 1: With the market trading at 1670.50, buy 1 Dec E-mini S&P 500 at 1670.50, stop. This order can only be filled at the market after the market trades (or is “offered”) at 1670.50 or higher.
- When selling, a Sell Stop occurs when the order price is lower than (below) the current market price.
- Scenario 2: Sell 1 December E-mini S&P 500 at 1710.75 stop if the market is trading at 1710.75. This order can only be filled at the market if it trades (or is “bid”) at 1710.75 or lower.
Stop Limit Order
A stop limit order, also known as a stop loss order, lists two prices and aims to give you more control over the price at which your stop is filled. The first part of the order is written in the same manner as the stop order above. The order’s second part specifies a limit price. This indicates that you do not want to be filled beyond the limit price if your stop is triggered. When attempting to exit a position, stop limit orders should usually not be used. If a customer does not specify a limit price, the stop price and the limit price are assumed to be the same.
GTC ( Good Until Canceled Order)
Good Until Cancelled (or Open Order). Paired with a Limit or Stop order, this order will remain valid and operational until the client cancels it, it is filled, or the contract expires.
GTC Order is Not Automatic Cancellation
If an order is not specified as Good Till Canceled, it is considered a Day Order and will expire at the end of the current trading session unless filled or canceled before the close.
One (Order) Cancels the Other (OCO)
- A one cancels the other order, also known as an “OCO order,” is a type of advanced order that combines orders.
- For example, if the market is trading at 1655.75, you may want to buy at 1653.50 Limit (lower) or on an upside breakout at 1657.50 Stop (higher), Buy 1 December E-mini S&P 500 at 1653.50 Limit, OCO Buy 1 December E-mini S&P 500 at 1657.50 Stop.
When one order is filled, the other is automatically cancelled. The same procedure can be used to bracket an entry with an OCO stop and target.