Example 2: Scale Order with Profit-Taking Orders
Data Assumptions:
| Label | Value |
|---|---|
| NBBO | $411.69 - $411.71 |
| Action | Buy |
| Total Order Size | 600 |
| Initial/Subsequent Component Size | 5 |
| Starting Price | $410.76 |
| Price Increment | .02 |
| Order Type | Limit |
| Time in Force | GTC (this is set on the Basic tab of the order ticket) |
| Create profit taking order | Check to enable |
| Profit Offset | 0.20 |
Like example 1, this is an order to buy 600 shares scaled into 120 components of 5 shares each. In addition, we have instructed the system to submit profit-taking sell orders against each order component, with a .20 profit offset. This means the profit orders will be submitted at the last filled price level plus the .20 cent offset.
-
The first 5 share component is submitted as a buy limit order at the Starting Price of $410.76. When the component order fills two things happen. The next component of 5 shares is submitted at $410.74 (component price - price increment), and a sell order is submitted for 5 shares at $410.96 (component price + profit offset).
-
When the $410.74 price level fills, a sell order for 5 shares at $410.94 (component price + profit offset) is submitted. This pattern continues until all components have filled, or you cancel the order.
-
The order will be held if any parent component becomes unmarketable, but the profit orders can continue to work without holding up the order.