Contingencies

Contingent Orders are orders that are placed automatically by the GUI, based on triggering events. The triggering events will be fills, partial fills and price changes. All Contingent Order functionality is controlled by a provisioning setting "Contingent Orders". Contingent orders are activated for the period the application is running; if logged-off, the contingent orders are saved on the server and next time the user logs-in they are reactivated.

The "Contingency" menu contains four sections:

Entry orders
Exit orders
Contingency
Show All Contingencies

After these sections, there are 2 more items described:

Group Order and Group View
Contingency Templates

The "Contingency" menu appears in all the frames which have Order Entry column when the user right clicks this section (see the figure below). In the following, the example figures, will be from the "Charts" frame of the application, although Order Entry column exists in a lot of frames. For example, in "Depth Of Market", "Price Ladder", "Advanced Options", "Orders & Positions", "Options Chain", "Quotes Monitor" or "Broker Workstation" too.

There are two types of contingent orders: "Entry Orders" and "Exit Orders".

Entry Orders

This type of contingent order can be placed simple or it can be attached to a placed order ("Buy" or "Sell").

1. Limit

It's the standard limit order. In the example at the right there is a limit order: Buy 1 ESZ7 at 10 ticks below the market will be placed. The "Limit gap" is the number of the ticks between the market price and the contingency and it can be specified in ticks, points, $ or %. In the "New Limit" dialog box, the user can specify the "Contract", if he wants to "Buy" or "Sell", the "Limit gap" and the "Quantity".

By pressing the "Ok" button, the user validates his selections. By pressing the "Default" button, he makes the new settings to be default in the following. By the "Cancel" button, he interrupts this action and goes back to the initial frame, without any contingent order placed.

An example for a "New Limit" contingency order (Buy 1 @1545.00) which is placed in the Order Entry section of the "Charts" frame is represented in the first figure below. Two "New Limit" contingency orders (Sell 1 @1559.00 and Buy 1 @1556.25) are attached to a placed order (Sell 1 @1572.00) in the second figure.

2. Synthetic Stop Entry

Simulates a STOP order type. It can be used when the user needs to place a STOP order and the exchange does not support STOP orders. For "Buy" STOP orders, the order becomes a market order once there is a trade >= the STOP price. For "Sell" STOP orders, the order becomes a market order once there is a trade <= the STOP price.

In this dialog box the user selects the "Contract", the order type ("Buy" or "Sell") and the "Quantity" for this contingent order. After these he can set the "Price" or the "Offset" to specify the conditions for placing an order. The "Offset" is the number of the ticks between the market price and the contingency.

By pressing the "Ok" button, the user validates his selections. By pressing the "Default" button, he causes the new settings to be the default settings in the future. By using the "Cancel" button, he interrupts this action and goes back to the initial frame, without any contingent order being placed.

An example for a "New Synthetic Stop Entry" contingency order (Buy 1 @1555.00) which is placed in the Order Entry section of the "Charts" frame is represented in the first figure below. The second example represents a "New Synthetic Stop Entry" contingency order (Buy 10 @1560.75 SynSTOP) which is attached to a placed order (Sell 1 @1581.75).

3. Synthetic MIT (Market If Touched) Entry

Simulates an MIT order. It can be used when the user needs to place a MIT order and the exchange does not support MIT orders. For "Buy" MIT orders, when Last trade price <= price, fill the order at the Last trade price. For "Sell" MIT orders, when Last trade price >= price, fill the order at the Last trade price.

In this dialog box the user selects the "Contract", the order type ("Buy" or "Sell") and the "Quantity" for this contingenct order. After these he can set the "Price" or the "Offset" to specify the conditions for placing an order. The "Offset" is the number of the ticks between the last trade price and the contingency.

An example for a "New Synthetic MIT Entry" contingency order (Buy 5 @1550.75 SynMIT) which is placed in the Order Entry section of the "Charts" frame is represented in the first figure below. The second example represents a "New Synthetic MIT Entry" contingency order (Buy 3 @1551.50 SynMIT) which is attached to a placed order (Sell 1 @1531.25 STOP).

4. Scale-In

A Scale-In is 2 or 3 separate limit orders, with progressively lower (for buys) or higher (for sells) limit prices. The user can set a different quantity per level. The "Limit gap" represents the number of the ticks between the market price and the contingency and it can be specified in ticks, points, $ or %.

An example for a "New Scale-In" contingency order (Buy 1 @1540.00, Buy 2 @1515.00 and Buy 3 @1477.50) which is placed in the Order Entry section of the "Charts" frame is represented in the first figure below. The second example represents a "New Scale-In" contingency order (Buy 1 @1539.25, Buy 2 @1514.25 and Buy 3 @1476.75) which is attached to a placed order (Sell 1 @1570.75).

5. Trailing Limit (Chase The Market)

Think of it as the opposite of the Trailing Stop. Activation can be a differential value or MIT. For example, a user places such an order to buy 1 @ 12 with a differential of 3 ticks, and the market is 15. The market moves to 16, so the order is canceled and replaced to buy 1 @ 13. Next, the market goes down to 14. Nothing happens. Next, it goes up to 17, and at that time, the order is canceled and replaced to buy 1 @ 14. Instead of a "Stop Gap" we use a "Limit Gap" (see Trailing Stop description below).

In the dialog box at the right the user can specify the "Contract" and the type of the order ("Buy" or "Sell"). After these, he sets the "Chase activation trigger". This element is an initial condition. If the number of the ticks between the market price and the contingency equals the number specified in this field, in the following, "Limit trailing trigger" and "Limit gap" options will be used. "Limit trailing trigger" and "Limit gap" show how many ticks are between the market price and the contingent order. The first shows the distance, which determinate the cancel of the order and the second the distance where it will be replaced. The distance can be specified in ticks, points, $ or %. The last option, which can be set is the "Quantity" of the order.

An example for a "New Trailing Limit" contingency order (Buy 1 @1549.25) which is placed in the Order Entry section of the "Charts" frame is represented in the first figure below. The second example represents a "New Trailing Limit" contingency order (Buy 1 @1549.25) which is attached to a placed order (Buy 1 @1556.50 STOP).

6. Iceberg

Defines a cascade of orders. It has a total quantity as an overall quantity to be traded for the contract. The user specifies a step and an "Initial quantity" both used to compute the quantity for the orders to be placed. An order is placed on the initial quantity. When the initial order is filled, immediately place an order for the lesser of ("Incremental quantity") or ("Total quantity" - quantity already filled).

For example: given the "Total quantity" of 10, the "Incremental quantity" of 2 and the "Initial quantity" of 4, the following sequence of quantities are generated: 4, 2, 2, 2. So, 4 orders are created using these quantities: first one placed immediately and the next 3 as unplaced.

Second example: given the "Total quantity" of 10, the "Incremental quantity" of 3 and the "Initial quantity" of 2, the following sequence of quantities are generated: 2, 3, 3, 2. The last element is 2, because 2+3+3=8 and 10-8=2, although the "Incremental quantity" is 3 you have just 2 at the end of the sequence.

All orders are placed at the same price. The user can Cancel/Replace/Cancel Replace MKT and the price or quantities for the active order and left unplaced orders are recomputed.

The user sets the type of the orders (Buy/Sell), the total quantity, the initial quantity, the incremental quantity and the price for the orders (an absolute price or an offset).

The total quantity and the incremental can be modified using the "Edit Contingency Window" accessed from the menu.

After these he can set the "Price" or the "Offset" to specify the conditions for placing an order. The "Offset" is the number of the ticks between the last trade price and the contingency.

An example for a "New Iceberg" contingency order (Buy 10 @1550.00) which is placed in the Order Entry section of the "Charts" frame is represented in the first figure below. The second example represents a "New Iceberg" contingency order (Buy 10 @1538.75) which is attached to a placed order (Sell 1 @1561.25).

7. Timed Entry

Places a "Sell" or "Buy" order for the specified "Contract", "Quantity", "Order Type" and "Price" at the date and time which are indicated by the "Exchange Date" and the "Exchange Time" fields. The "Offset" is the number of the ticks between the last trade price and the contingency. The date can be selected by pressing the "Calendar" button .

An example for a "New Timed Entry" contingency order (Buy 1 @1551.50) which is placed in the Order Entry section of the "Charts" frame is represented in the first figure below. The second example represents a "New Timed Entry" contingency order (Buy 5 @1552.25) which is attached to a placed order (Sell 1 @1585.00).

Exit Orders

This type of contingent order can be attached to a placed order ("Buy" or "Sell").

1. Stop Loss Exit

The "Stop Order Type" can be STOP, STL or STWL. For STWL type the user can set the "Stop Limit Gap" which is the number of the ticks between the market price and the contingency.

a) Stop: The standard STOP, STL or STWL order.

b) Reverse Stop: Stop (STOP, STL or STWL) order with Entry Position quantity * 2 that effectively changes the user's position from long to short or short to long.

By pressing the "Ok" button, the user validates his selections. By pressing the "Default" button, he makes the new settings to be default in the following. By the "Cancel" button, he interrupts this action and goes back to the initial frame, without any contingent order placed.

An example for a "Stop Loss Exit" contingent order (Sell 1 @1544.50 STOP) which is attached to a placed order (Buy 1 @1557.00 STOP) is represented in the figure at the right.

2. Trailing Stop Exit

There are three important parameters in the "New Trailing Stop Exit" dialog box: "Stop activation trigger", "Stop trailing trigger" and "Stop gap".

Stop activation trigger: The activation differential is the differential between the fill price and the last trade that must be reached before the trailing stop is activated. This is the "profit" that a trade must reach, so for a long position, Last Trade - Fill Price >= Activation and for a short position, Fill Price - Last Trade >= Activation. If zero is specified, then the initial stop order should be placed at the same time as the limit order.

Stop gap: The differential between the last trade and the stop price when a trailing stop is initialized or adjusted.

Stop trailing trigger (Adjust Interval): Stop Trailing Trigger can be minimum 1 tick and it represents the number of ticks for the market to move in trader's favor, so a new adjustment will be made.

The Stop gap of a trailing stop can be set to "Breakeven" which is the position entry price plus a user-definable value representing additional commissions and fees that the user must recover for the trade to be considered "breakeven". Once a stop is set to breakeven, it no longer adjusts. A user should not set a stop gap to Breakeven of the Stop activation trigger is zero. This is because the Entry and Exit would be triggered at the same time. Therefore, in order to specify a Stop gap of Breakeven, the Stop activation trigger should be > 0. Breakeven is often used in conjunction with multiple adjustment levels. For example, a trader might set the first adjustment level of a trailing stop at 0, 3, 1. In this way, when filled, he will lose a maximum of 3 ticks. However, he is concerned that once the trade becomes profitable, small downswing before a rebound could take him out of the market. Therefore, he sets a second adjustment level of the trailing stop at 4, Breakeven, 0. Therefore, when his profit reaches 4, his Stop is adjusted to his Breakeven price, and it stays there until he exits the position.

An example for a "Trailing Stop Exit" contingent order (Buy 1 @1601.75 STOP) which is attached to a placed order (Sell 1 @1596.75 is represented in the figure at the right.

3. Profitable Exit

a) Limit: The standard limit order.

b) Reverse Limit: Limit order with Entry Position quantity * 2 that effectively changes the user�s position from long to short or short to long.

The user can specify the "Limit gap" too, which is the number of the ticks between the market price and the contingency. This distance can be specified in points, $ and %, too.

An example for a "Profitable Exit" contingent order (Buy 1 @1615.00 STOP) which is attached to a placed order (Sell 1 @1627.50 is represented in the figure at the right.

4. Synthetic OCO Stop Loss or Profitable Exit

This type of contingent order is a combination between two contingencies: "Stop Loss Exit" and "Profitable Exit". These were explained above. OCO (One Cancel Other) means, that if one of them is placed, the second contingent order will be canceled. The order which has all the conditions reached, will be placed first.

An example for a "New OCO Stop Loss or Profitable Exit" contingency order (Sell 1 @1628.25 and Sell 1 @1603.25 STOP) which is attached to a placed order (Buy 1 @1615.75 STOP) is represented in the first figure. In the second figure is represented a "New OCO Stop Loss or Profitable Exit" contingent order (Sell 2 @1651.25 and Sell 2 @1626.25 STL) which is attached to a placed order (Buy 1 @1638.75 STOP). In this example the "Stop or Reverse" field has the "Reverse Stop" value and the "Limit or Reverse", the "Reverse Limit" value. This is the reason, why the quantity in the second figure for the contingent order is 2.

5. Synthetic OCO (One Cancel Other) Trailing Stop or Profitable Exit

This type of contingent order is a combination between two contingencies: "Trailing Stop Exit" and "Profitable Exit". These were explained above. OCO (One Cancel Other) means, that if one of them is placed, the second contingent order will be canceled. The order which has all the conditions reached, will be placed first.

An example for a "New OCO Trailing Stop or Profitable Exit" contingency order (Sell 1 @1561.00 and Sell 1 @1536.00 STOP) which is attached to a placed order (Buy 1 @1548.50 STOP) is represented in the first figure. In the second figure is represented a "New OCO Trailing Stop or Profitable Exit" contingent order (Sell 2 @1552.25 and Sell 2 @1527.25 STOP) which is attached to a placed order (Buy 1 @1539.75). In this example the "Stop or Reverse" field has the "Reverse Stop" value and the "Limit or Reverse", the "Reverse Limit" value. This is the reason, why the quantity in the second figure for the contingent order is 2.

6. Timed Exit

Market or Limit order at the specified time. The user can set the "Order Type", the "Price" or the "Offset" which specifies the number of the ticks between the market price and the contingency and, at last, the "Exchange Date" and the "Exchange Time" which are the date and the time when the specified order will be placed. The user can select the date from a calendar. The calendar can be accessed by pressing the Calendar button .

An example for a "New Timed Exit" contingent order (Sell 1 @1544.00 MKT) which is attached to a placed order (Buy 1 @1522.25 is represented in the figure at the right.

7. Bracket Exit

This type of contingent order is a combination between three contingencies: "Profitable Exit", "Stop Loss Exit" and "Timed Exit". These were explained above. OCO (One Cancel Other) means, that if one of them is placed, the second and the third contingent order will be canceled. The order which has all the conditions reached, will be placed first.

An example for a "New Bracket Exit" contingent order (Sell 2 @1551.75 and Sell 1 @1526.75 STOP) which is attached to a placed order (Buy 1 @1539.25 is represented in the figure at the right.

8. Synthetic Stop Exit

This type of exit contingent order is the pair of the "Synthetic Stop Entry" entry contingent order. The difference between them is that an entry contingency can be placed alone and can be attached to a placed order, too and the exit contingency can just be attached to a placed order.

The user can specify the "Gap" which is the distance between the market price and the contingency. The distance can be specified in: ticks, points, $ and %.

An example for a "New Synthetic Stop Exit" contingent order (Sell 1 @1545.75 SynSTOP) which is attached to a placed order (Buy 1 @1550.50 STOP) is represented in the figure at the right.

9. Synthetic MIT Exit

This type of exit contingent order is the pair of the "Synthetic MIT Entry" entry contingent order. The difference between them is that an entry contingency can be placed alone and can be attached to a placed order, too and the exit contingency can just be attached to a placed order.

The user can specify the "Gap" which is the distance between the market price and the contingency. The distance can be specified in: ticks, points, $ and %.

An example for a "New Synthetic MIT Exit" contingent order (Buy 1 @1546.25 SynMIT) which is attached to a placed order (Sell 1 @1533.25 STOP) is represented in the figure at the right.

Contingency

This is the third section of the "Contingency" menu and it contains 3 elements: "Contingency Details", "Edit Contingency" and "Delete Contingency". This section is active, when there is, at least, one contingent order placed.

You can see an example for an "Attach Bracket Exit" contingent order. This contingency is an exit type contingent order and it is attached to a placed order.

If the user selects the "Contingency Details" option for this type of contingent order, the following window appears:

If the user selects the "Edit Contingency" option for this type of contingent order, the edit dialog box will appear. This dialog box has three tabs, because the "Bracket Exit" contingent order is a combination between three contingencies: "Profitable Exit", "Stop Loss Exit" and "Timed Exit". The user can edit each of these contingent orders. See the picture below.

If the user selects the "Delete Contingency" option, a dialog box will appear (see the picture below). In this dialog box the user have to confirm that he is sure the perform the action. If he presses the "Ok" button, the contingent order will be deleted.

Show All Contingencies

This is the fourth section of the "Contingency" menu and it opens the "Order Contingencies" dialog box. This dialog box can be accessed from the Order Entry toolbar, from the Contingent Orders Editor button, too. This dialog box contains elements, if there are contingent orders placed in the application. This dialog box (for the example with "Bracket Exit" contingent order above) is represented in the figure below.

In the right side of this dialog box, there are 4 buttons:

"Show Details" button opens a dialog box, which describes the contingent order which is selected in the "Order Contingencies" dialog box. For our example, this description is represented in the figures below. As you can see, this dialog box can be accessed directly from the "Contingency" menu, from the "Contingency Details", too.

By the "Edit Contingency" button the user can edit the selected contingent order's parameters. For our example, the window which appears is represented in the figure below. As you can see, this dialog box can be accessed directly from the "Contingency" menu, from the "Edit Contingency" option, too.

By pressing the "Delete Contingency" button, the user will delete the selected contingent order from the "Order Contingencies" dialog box and from the application, too. To perform this action, the user have to confirm it. As you can see, this dialog box can be accessed directly from the "Contingency" menu, from the "Delete Contingency" option, too.

If the user presses the "Symbol Legend" button, the "Order Entry Symbols Legend" window will appear. See the figure below.

Group Order and Group View

In the "Order Entry Symbols Legend", the last 6 symbols are for grouped orders. In the following these type of orders will be represented.

Example:

If a user wants to place a "group order", at first he needs to create an account group. To create a new account group, the user have to press the Account Groups button from the Order Entry toolbar. If he clicks this button, the following dialog box will appear:

By pressing the "Create a new group" button the "New Group" dialog box will appear. To create a new account group, first, the user will add a name for the new group in the "Group name" field (in our example this name will be Test Group). After this, he will select from the "Available" accounts, the accounts which will be added to the new account group. To add an account to the group, he have to select an account from the "Available" column and by the button, he will add it to the "Selected" column. If he wants to add all the accounts to the new account group, he will press the button. The and buttons are used to remove an account from the "Selected" column. After the accounts are selected, the user can specify for all of them, the default order quantity in the "Quantities" section of the "New Group" dialog box. He can apply one quantity for All the accounts or one quantity for each of them. After he introduced the quantity, he have to press the "Apply" button to put into practice his settings. In the "Preview" section of this dialog box, there are represented the accounts which will be added to the new group and the default quantity for each of them. In our example, we will select 3 accounts: 00001 - PAPER TRADING, 00002 - PAPER TRADING and 00003 - PAPER TRADING and the quantities will be: 1, 2 and 3. See the figure below.

After the user pressed the "Ok" button, the created group will appear in the "Account Groups" dialog box and in the Account combo box from the Order Entry toolbar, too.

We will select the "GR:Test Group" account group from the "Account" combo box and we will use it to place a "Buy" order in the Order Entry section from the "Charts" frame. See the figure below.

The result will be a "group order":

The quantity for this order is 6, because when we created the account group, we defined the default order quantity for each account separately and we set for the 00001 - PAPER TRADING account 1, for 00002 - PAPER TRADING 2 and for 00003 - PAPER TRADING 3. If we add this numbers, we get 1+2+3 = 6. The figure above represents the "group view" of this order.

In the first three figures below, we will show how the above placed order appears if we select (from the Account list) an account which belongs to the Test Group. The last figure shows, that if an account is not in the group for which we placed the group order, we have not an order placed.

Contingency Templates

In order to read more about Contingency Templates, please click here.