Limit-On-Close (LOC) Order

Limit-On-Close (LOC) is an order to be executed as a Limit Order (i.e. to buy/sell at the Limit Price or better) as close as possible to the market close.
Hence, Limit-On-Close order will be executed at or near the closing price, only if the price is at or better than the Limit Price. Otherwise, the order will be cancelled.

Similar to Market-On-Close (MOC) order, for this order, the broker normally set a time deadline for LOC order submission for that day, which is well before the closing of the trading day. After this submission time deadline, the broker will not accept any more LOC order, and the traders also cannot cancel the submitted LOC order for that day.

As with limit order, while Limit-On-Close order can be filled at the Limit Price or better, it does not guarantee a fill.

LOC order is useful when traders find that the closing price of a certain security has historically proven to be the best price of the day (i.e. the closing price is the highest for sell order, or lowest for buy order), but still want to have control over the price at which the order will be filled to ensure that the execution price is still within their comfortable / acceptable limit.

For the list of other types of order, go to: Types of Orders in Trading.

Related Topics:
* Getting Started Trading
* FREE Trading Educational Videos You Should NOT Miss
* Learning Charts Patterns
* Learning Candlestick Charts

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Short Trading Videos: How To Determine MARKET TREND & How To Use FIBONACCI To Measure Market Retracement

Just wanna share some short trading videos that could be helpful for the readers here, particularly for the beginners, to learn few quick, simple yet practical trading tips.
Here they are & enjoy:

1) HOW TO DETERMINE MARKET TREND

This five minute video shows some techniques on how determine market trend:
* How to determine a downtrend.
* How to determine an uptrend.
* How to determine when a market is making a change of direction.

As you can see in the video, one of the key components to look out for is how a market closes on a Friday or the last trading day of the week. Because this is when traders have to decide what they want to do with their positions, and it can also tell you with a high degree of probability which way the market is headed for the upcoming week.
Watch this video HERE.

2) EXAMPLE ON HOW TO USE FIBONACCI TO MEASURE RETRACEMENT

This short video shows an example how to use Fibonacci tools to predict / measure the upward retracement during this downtrend period in the Dow Jones Index (as at 1 Dec 2008).
In addition, the video also shares some analysis & prediction on what and how you’re going to approach the markets in 2009.
To watch this video, just click HERE.

Related Topics:
* FREE Trading Educational Videos You Should Not Miss
* Learning Candlestick Charts
* Learning Charts Patterns

Read More

Market-On-Close (MOC) Order

Market-On-Close (MOC) is an order to be executed as a Market Order (i.e. to buy/sell at the market price) as close as possible to the market close.
Hence, the order will be executed at the market closing price (which may differ with exchanges), or as near as possible to the closing price.

For this order, the broker normally set a time deadline for MOC order submission for that day, which is well before the closing of the trading day. After this MOC submission time deadline, the broker will not accept any more MOC order, and the traders also cannot cancel the submitted MOC order for that day.

As with market order, while Market-On-Close (MOC) order guarantees an execution, it cannot guarantee the price at which your order will be filled.

MOC order is useful when traders find that the closing price of a certain security has historically proven to be the best price of the day (i.e. the closing price is the highest for sell order, or lowest for buy order) and then decided to buy/sell at or near the closing price, whatever the price is.

In option trading, one possible use of this order is for options sellers who want to close their expiring option positions at the last minute of expiration day in order to maximize profit by letting the remaining last cent of option’s time value to decay before closing the position.

For the list of other types of order, go to: Types of Orders in Trading.

Related Topics:
* FREE Trading Educational Resources You Should Not Miss
* Getting Started Trading
* Options Trading Basic – Part 1
* Options Trading Basic – Part 2

Read More