The 3Dimensional Trading Breakthrough

The 3 Dimensional Trading Breakthrough
Example #3 - Market order (offsetting a futures position): I wish to
liquidate my June Cattle position in order to take immediate profit:
“This is a day order for account #12345, buy back 1 June Live Cattle
at market.”
Example #4 - Market order (offsetting a futures position): I wish to
liquidate my wheat position in order to cut losses immediately:
“This is a day order for account #12345, sell back 3 Dec Wheat at
market.”
Example #5 - Market order (initiating an option position): I want
to buy long two May 30-year bond call options at a strike price of
114:
“This is a day order for account #12345, buy long two May Bond
114 Calls at market.”
Example #6 - Market order (initiating an option position): I would
like to sell short two March S&P 500 Index put options at a strike
price of 1150:
“This is a day order for account #12345, sell short two March S&P
1150 Puts at market.”
Brian: Remember however, when placing market orders you are at the mercy of
the floor traders with that particular market. A fast trading market may give you
a poorly positioned fill or a costly liquidation. Think twice about placing market
orders unless you find yourself in a situation with the market that you would like
to remedy immediately!
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