Transmit a Combination Order
Instructions
To Create a Combination Order
Note: Before you transmit a combination order, carefully review your order parameters on the order management line, or from the Order Ticket window by clicking Accept.
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From the market data line, click the "Ask" or "Bid" price for the combination order you want to create.
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Click the Ask Price to create a Buy order.
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Click the Bid Price to create a Sell order.
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On the Order Management line, modify order parameters, if needed.
- Note on Pricing: If you buy a spread and you owe cash (debit spread), enter a positive limit price. If you buy a spread and you receive cash (a credit spread), you must enter a negative limit price. Conversely, if you sell a spread and receive cash, enter a positive limit price. If you sell a spread and owe cash, you must enter a negative limit price.
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For example, an April 20 xyz call shows a BID price of 6.60 and an ASK price of 6.70. An April 30 xyz call shows a BID price of 0.15 and an ASK price of 0.20.
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If you buy a "debit" call vertical spread with the following legs:
Buy 1 OPT APR02 20.0 CALL (6.70).
Sell 1 OPT APR02 30.0 CAL L (0.15).
For this transaction you pay: 6.55 (a debit transaction).
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If you buy a "credit" call vertical spread with the following legs:
Sell 1 OPT APR02 20.0 CALL (6.60).
Buy 1 OPT APR02 30.0 CALL (0.20).
For this transaction you receive 6.40 (a credit transaction; enter a negative limit price).
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Transmit the order.