What parameters need to be set in the commission order of OYi Contract?

By understanding commission order types in OYi Contract, traders can configure parameters for limit, market, and stop orders based on trading strategies and market conditions, optimizing executions and managing risk effectively.

Jan 28, 2025 at 12:48 am

Key Points:

• Understanding commission order types in OYi Contract
• Configuring parameters for limit orders, market orders, and stop orders
• Optimizing order settings based on trading strategies and market conditions

1. Understanding Commission Order Types in OYi Contract

• Limit Order: An order that specifies a specific price level at which the trader is willing to buy or sell an asset. The order remains open until it is filled or canceled.
• Market Order: An order to execute a trade immediately at the best available market price. It is filled instantly, without regard to a specific price level.
• Stop Order: A conditional order that becomes active only when the market price reaches a specified trigger value. It can be used to enter or exit a trade based on specific market conditions.

2. Configuring Parameters for Limit Orders

• Type: Select 'Limit' order type.
• Order Price: Specify the desired price level at which the order should be executed.
• Trigger Type: Choose 'Below Limit' for a buy order and 'Above Limit' for a sell order. This sets the trigger condition for when the order becomes active.
• Quantity: Enter the amount of assets to be bought or sold.
• Time-in-Force: Select the duration for which the order will remain active. Options include GTC (Good-Till-Cancelled), IOC (Immediate-or-Cancel), or FOK (Fill-or-Kill).

3. Configuring Parameters for Market Orders

• Type: Select 'Market' order type.
• Quantity: Enter the amount of assets to be bought or sold.
• Execute Immediately: This option ensures that the order is executed immediately at the best available market price. If unchecked, the order may fill partially or not at all.

4. Configuring Parameters for Stop Orders

• Type: Select 'Stop' order type.
• Order Price: Specify the trigger price that will activate the order.
• Stop Type: Choose 'Stop-Limit' for an order that activates at the trigger price and then executes at a limit price. Choose 'Stop-Market' for an order that activates at the trigger price and executes immediately at the market price.
• Quantity: Enter the amount of assets to be bought or sold.
• Trigger Condition: Specify whether to activate the order on a 'Greater Than' or 'Less Than' condition of the trigger price.

5. Optimizing Order Settings Based on Trading Strategies and Market Conditions

• Trading Strategy: Use limit orders for precise price execution, market orders for immediate execution, and stop orders to enter or exit trades based on specific market conditions.
• Market Volatility: Set appropriate time-in-force options based on market volatility. Use GTC for stable markets, IOC/FOK for volatile markets.
• Order Size: Adjust order size to minimize slippage or missed opportunities. Larger orders may experience delays in execution, while smaller orders may fill quickly but at less favorable prices.

FAQs:

1. What is the difference between a 'Stop-Limit' and 'Stop-Market' order?
A 'Stop-Limit' order activates at a specific trigger price and then executes at a limit price, providing some control over the execution price. A 'Stop-Market' order activates at the trigger price and executes immediately at the market price, sacrificing price control for instant execution.

2. How can I manage the risk associated with commission orders?

• Use stop-loss orders to limit potential losses.
• Set appropriate time-in-force options to prevent orders from staying open indefinitely.
• Monitor market conditions and adjust order parameters accordingly.

3. What are the advantages of using limit orders over market orders?

• Precise price execution: Limit orders guarantee that the order will execute at the specified price or better.
• Control over execution: Traders can set the desired price level, avoiding slippage or unexpected price movements.
• Reduced market impact: Limit orders can be placed quietly in the order book, minimizing market impact for large orders.