[Tokyo Grain Exchange] Trading Guide : Electronic Trading / Order Types

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Electronic Trading / Order Types

	Trading Method

Single Price Matching prior to the opening of the Session

Single price matching prior to the open of the session is the matching of orders submitted during the time period only for the submission of orders. A single price is fixed where the majority of buy and sell orders submitted at that time therefore not all buy and sell orders are executed at the time.

Continuous Trading

Continuous trading begins following the single price matching until the end of the trading session and the buy and sell orders entered during this time that meet the requirements will be executed. This means that numerous contract prices will be formed.

For the trades to be executed, each buy and sell order will prioritized and 1) a high price buy limit order (LO) will have priority over a lower price limit order (LO); 2) a low price sell limit order (LO) will have priority over a higher price sell limit order (LO); and 3) Market orders have price priority over other types of orders. Furthermore, if the orders have the same price the order entered earliest will have priority (time priority). This is called the “Price/Time Priority Principle”

Price priority example:

(1) A high price buy limit order (LO) will have priority over a lower price limit order (LO).

(2) A low price sell limit order (LO) will have priority over a higher price sell limit order (LO).

(3) Market orders have price priority over other types of orders.

Time priority example:

(1) Orders entered earliest will have priority over orders that have the same price priority entered at a later time.

(2) When the trigger price is reached for stop orders (SO), time priority over other orders will be determined depending on the time the orders was entered.

	Order Types

There are 7 types of buy and sell orders that the Exchange provides.

Order Types	Description
Limit Order（LO）	An order to buy or sell with a specified price that will be executed at the specified price or better. A buy LO is executed at the price that was specified or lower and a sell LO is executed at the price that was specified or higher.
Market Order（MO）	An order to buy or sell that can be executed regardless of the price.
Market-to-Limit Order（MTLO）	An order to buy or sell that is entered to be executed at the current best market price.
Best Limit Order（BLO）	An order to buy or sell that becomes a LO at an equal price of the best bid/offer on the same side of the market.
Stop Order（SO）	If the market reaches the conditions specified at the time the order was entered, the order will convert into the specified order type.
Standard Combination Order（SCO）	Facilitate spread trading with implied-out functionality.
Non-Standard Combination Order（NSCO）	In the same market division (agricultural/sugar), you are able to combine buy and/or sell orders of various prices in 2 contract months.

* Due to the policy of the broker member, there may be a difference in the types of orders that they handles and also a difference in the time from the Exchange for order submittance.

Order Validity

Execution Conditions	Description
Fill and Store（FaS）	If there are unfilled volume after the execution of a part of an order, the unfilled volume is stored in the order book until the expiration of its validity or the volume is filled.
Fill and Kill（FaK）	If there are unfilled volume after the execution of a part of an order, the unfilled volume is canceled.
Fill or Kill（FoK）	If all the volume in an order is not immediately executed, then the order is canceled.

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