FACTSim Help : Opening a Position : Selecting the Order Type
The next screen we encounter allows us to choose what type of order type we would like to enter to open a new position. This page provides a wealth of information about the transaction. The first table we see shows any offsetting positions we already hold. Two transactions offset if they contain the same contract, but opposite positions (i.e. a long and a short September 2003 corn contract would offset each other, effectively cancelling each other out. If there are offsetting positions, they will be closed by the new contracts. If there are no offsetting positions, the new contracts will be opened normally.


The offsetting positions table.

The next table is the Contract Information table. This table outlines the fees you will have to pay to open this position.


The contract information table.

• Contract - The FACTSim ticker symbol for this contract.
• Quantity - The number of contracts being bought/sold.
• Position - Denotes whether the position will be long or short.
• Current Price - The current trading price for the contract.
• Trade Fee - The amount the trader will be charged to complete this transaction.
• Initial Margin - The initial margin costs for one contract.
• Total Initial Margin - The total initial margin costs for this transaction.
• Maintenance Margin - The maintenance margin costs for one contract.
• Total Maintenance Margin - The total maintenance margin costs for this transaction.

The Pre and Post Transaction tables allow you to see how opening the position will affect your account balances.


The pre transaction table.


The post transaction table.

• Cash - The amount of cash in the trader's account.
• Margin Costs - The amount of money tied up in maintenance margins.
• Available Capital - The amount of money available to the user to open new positions.

The most important part of the the order screen is selecting an order type. FACTSim allows a number of order types to be chosen.


The order types supported by FACTSim.

The Order Type field determines under what conditions your order will be filled. You may choose from five order types used to place orders on the actual trading floors of real exchanges.

• Market Order - If the order is placed during the contract's trading hours, a position is established at the current market price. If the order is placed outside the contract's trading hours, a Trade at Open Order is entered into the system (see below).
• Limit Order - A Limit Order (or Price Limit Order) will be established if the market reaches the Target Price specified by the trader. For long positions (buying), a position will be established if the market price is at or below the target price. For short positions (selling), a position will be established if the market price is at or above the target price.
• Trade at Open - The position will be established at the open price on the next active trading day.
• Trade at Close - The position will be established at the next available settle price. If the order is entered before the contract's close time, the position will be established on the current day. Otherwise it will be opened on the next active trading day.
• Fill or Kill Order - A Fill or Kill Order is essentially a Price Limit Order with a time constraint. If the Target Price is not reached by the Target Time, the order is cancelled. If the Price Limit is met during before the Target Time, the position is established.

There are two additional fields in the order type field.


The complete order type table.

• Target Price - The target price is the price point at which you wish your order to be filled. For market orders, this will be the current market price. For Limit Orders or Fill or Kill Orders, this will be a price point determined by the trader.
• Target Time - The time of day by which you would like your order to be executed. If market conditions have not met your order requirements by this time, your order will be cancelled. Applies only to Fill or Kill orders.

The last step in opening a contract is the confirmation table. Here you will see what fees will be charged for the transaction one more time.


Confirming the order.

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