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PreferredTrade
6.2
Option Trading
The option trading window contains
boxes to enter option orders and buttons to send the order for
confirmation and execution. The boxes have selection lists or up
and down arrows. A click on an empty box allows you to type or
click in information. Below are the explanations for each box.
IMPORTANT: There will be no
additional displays of your orders to verify their accuracy or to
acknowledge or approve once you click the send button. This will
enable the system to give you the fastest transmission possible.
Be very certain the option symbol, contracts, price and other
conditions of your order are correct before sending your order.
In the event the order is not correct, you may attempt to cancel
the order by right clicking on the Order number under Working
Orders once it is live, i.e., confirmed with a "Yes."
Buy/Sell Box
Choose from the following; Buy to Open, Buy to Close, Sell to
Open or Sell to Close from the drop down list by highlighting
your choice to fills your selection automatically.
Contracts Box
Enter the number of options to trade by typing in the number
of contracts.
Symbol Box
There are several ways to enter the option symbol, manually
typing in the option symbol, point and click on a bid/ask price
from another window like the option chain or montage, right-click
on an existing position or lookup using the symbol lookup button.
Lookup the Option Symbol
Enter the underlying stock symbol in the symbol lookup field and
select "Lookup" to load the option chain.
Automatically from the Option
Tables
Automatically enter an option order from the Options Chain or
Option Montage by left clicking on a bid or ask price. Another
option is to right clicking on the "cCode" for calls,
"pCode" for puts and left clicking on the type of order
you want. The system automatically fills in the option order
entry boxes with the options symbol and last sale price. This
eliminates the need to enter an option manually. Go to the
options order entry boxes and enter the number of contracts,
modify the price, click "send" to submit the option
order or click "stage" to stage your order.
Price Box
The system automatically fills in the ask price for buys and bid
price for sells. This creates a limit order that can be adjusted
by using the up/down arrows next to the price field. Use the
radio button to switch to a "market" order. The price
in the price box is frozen after it is entered or adjusted and
does not update automatically. To update the price, unlock the
price field.
Route Box
Select from the radio buttons where to route the order. Options
can be routed via AMEX, BOX, CBOE, PHLX, PCX or ISE. The Default
option routing command is preset to "Best Exch." You
can change this setting to AMEX, BOX, CBOE, PHLX, PCX, or ISE.
See Preferences.
Stop Box
Specify a stop price by entering a stock or option price in
complete decimal or fraction format. For BUY stop orders, your
order is triggered when the offer price for the option reaches or
rises above your stop price if stopping on the option price, or
when the stock trades above your stop price when stopping on the
stock price. For SELL stop orders, your stop is triggered when
the bid price for the option reaches or drops below your stop
price if stopping on the option price, or when the stock trades
at or below your stop price if stopping on the stock price. Once
the stop price is reached, the order will become a live market or
limit order, depending on what is entered in the price field. If
you want to enter a market or limit order without a stop
component, leave the stop field blank.
Duration Box
All orders may be placed for the day (DAY) or good 'til cancelled
(GTC) with the following exception: Stops on Nasdaq stocks may be
placed for the DAY only. Opening (OPG) orders are accepted for
listed stocks only. All DAY orders not executed during regular
market hours are automatically canceled at the close of trading
at 4:00 PM Eastern Time.
Stop On Stock Box
When placing an option STOP order based on the price of the
underlying stock, this box must be checked before sending the
order. If the stop order is being placed on the price of the
option itself, this boxed should be left unchecked.
Contingent On Stock Box
When placing a Contingent order based on the price of the stock,
this box must be checked before sending the order. For an
explanation and information on the differences between Stop and
Contingent orders see down below.
Option Sweep
For option orders with a minimum size of 20 contracts the user has "sweep" as a viable routing destination. Sweep will select the exchanges with the best price and then prioritize them in order of size being shown. If the order exceeds the size being shown on the first exchange, an IOC order will be staged within the system for that quantity and the balance will be checked against the second exchange (if there is a viable second exchange) else, the entire quantity will be sent to that exchange as an IOC order. If the balance of the order exceeds the size on the second exchange, an IOC order will be staged within the system and the system will go to the third exchange (if viable), and so on until the balance of the order is zero or there are no viable exchanges left. The staged orders will then be sent as simultaneously as possible. Each order generated by the system will have a unique order number. Any unexecuted portion of the order will be cancelled.
Note: Options
involve risk and are not suitable for all investors. Click
here for Risk Disclosure.
To obtain a copy of the
Options Disclosure Document contact us at 1-888-781-0283.
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