It’s possible to link up the new Bourse 7 and Market Analyser 7 trading platforms to your Trader Dealer accounts, allowing you to execute orders directly from the platform. Linking your trading account to your software platform can save you money via rebates based on the number of trades you complete. If you have a Trader Dealer account and it’s not linked to your trading platform, then contact Trader Dealer on 1300 853 856 to get the account linked. If you don’t have an account you can quickly and easily open one with Trader Dealer as well.
Once your account is linked you can then place and monitor orders directly from your trading platform. The Orders menu contains a number of choices allowing you to place and monitor your orders and your open positions. You can also right click on any company name or code to buy or sell shares.
You can place a wide variety of orders using the Trader Dealer interface, including Market, Limit and Contingent orders. There are also advanced features available allowing you to tailor when an order is executed and how it is executed. Orders can be good until cancelled, good until a set date, Fill or Kill, and Fill and Kill. Today we’ll take a look at these different types of orders and how to implement them.
A limit order allows you to enter the highest price you will pay to buy a share and the lowest price you will sell a share for. For example, you may be prepared to buy CBA at up to 5360, but not pay more than this. To place this order right click on CBA and click Create Buy Order.
The Security Code is already filled in (if you chose to Create Buy Order from the Orders menu you will have to type in the share code). The last traded price is visible, and all you have to do is enter the volume and the price. You can type in the volume as number of shares, say 500, or you can type in a target value in dollar terms, say $10,000 and the quantity will be calculated for you. Enter the price you are willing to pay up to, in our example 5360 and click Buy. Check your order details and click Ok to place the order. Your order will now be executed if CBA trades at 5360.
To place a market order, enter the quantity as before, either in number of shares or a dollar amount using the Target Value feature. Then click on the Advanced >> button. This will give you a range of different choices in how your order is placed.
For a market order select Best Buy and click Buy. Check your order details are correct and click Ok. Your order will be executed at the best price currently available in the market.
A best order is priority queued at the current best bid or ask on the same side of the market. As soon as a best order is entered into the market, the order is converted to a limit order at the same price as the best bid or ask and will appear in the market as a limit order.
For example, if the market is 17 bid, 18 offered, the a buy order entered at Best places the order at 17, behind any orders already queued at that price.
You may want to use some of the other order types that are available in the Advanced section. The order Centre Point Limit will place your order into the market between the Bid and Ask price. If the market is trading at Bid 5350 and Ask 5360 you can use Centre Pont Limit to place your order at 5355. The most you will pay for the share is 5355. If you use Centre Point Market again your order will be placed at 5355 however you may pay more than this price when the order executes.
A Market to Limit order allows you to buy shares at the best price available but with an upper limit on what you are prepared to pay. This can be useful if you are attempting to execute a large order without driving the price higher.
You can use the Order Type to determine how long the order is valid for and how it is to be executed. End of Day means the order will be cancelled at the end of the trading day. Good till Cancelled means the order remains valid until you cancel it. You can also set an order to be valid until a set date and or time, which allows you to program in a custom end time.
A Fill or Kill order specifies that the whole order is to be filled or nothing at all. This order is useful for larger traders entering a position to ensure an order does not move the market. If there are sufficient sellers at the price you are willing to pay then the whole order will be executed. If there are not enough sellers then the order is cancelled. Fill and Kill is similar but the quantity that is available will be executed and the rest of the order cancelled. If you were trying to buy 10,000 shares at 5360 and there were only 6,000 shares on offer at this price using a Fill or Kill order it would be cancelled, but a Fill and Kill order would buy 6000 shares and cancel the rest.
The process for placing sell orders is the same as placing buy orders, except the button will state Sell instead of Buy.
Contingent orders allow your order to be executed when a set criteria is met. Until the criteria are met the order is not an active order and will not be visible in the market. Essentially these can be considered to be IF orders – if this happens, then do that. A contingent order is used to place a stop loss order.
Right click on any share and click Create Contingent Order. Set your order criteria, including the appropriate price (Last, Bid or Ask), the direction (Less, Greater) and the Trigger Price. You can also set start and end times for when the order is valid. An example of the trigger criteria would be: If CBA reaches a Last price Less than or equal to 5400.
Once you have set the trigger criteria you can then set the Action you want taken. Select the action (Buy or Sell), type in the volume, and choose the code of the share you want to trade – note this does not have to be the share you set the contingent criteria for, but normally would be the same. Enter the Order Price and click Ok. Check your order is correct and click Ok.
The Advanced tab allows you to control how the order is executed once the criteria have been met, as well as notification by email if the order triggers. Ticking the Create OCO Order allows you to set a second contingent order that will only become valid if the first order is executed. If CBA was to reach a price greater than 5600 you could buy CBA and then using the OCO functionality place a stop loss order on CBA to sell if it falls below 5400.
There is a wide range of order functionality available when using Trader Dealer in conjunction with the new Market Analyser 7 and Bourse 7 platforms. Give Trader Dealer a call today on 1300 853 856 to find out why they won the Best Broker for Heavy Users Gold Medal from Your Money Magazine.