Order Types and Information Disclosure
TAIFEX accepts market, limit and market with protection orders for execution. FCMs may at their own discretion accept more order types, including market-if-touched, stop, stop-limit, one-cancels-the-other, market-on-close, straight cancel and cancel-replace orders.
- Limit Order: A limit order is an order to buy or sell a stated quantity at a specified price, or at a better price if obtainable.
- Market Order: A market order is an order to buy or sell a stated quantity at the best price available.
- Market with Protection(MWP) Order: A market with protection order does not need to specify price when placed. After an MWP order is entered and received by TAIFEX trading system, a buy MWP order will be converted into a limit buy order with the price of the existing best bid plus the protection points, and a sell MWP order will be converted into a limit sell order with the price of the existing best offer minus the protection points. However, when no corresponding bid/offer is available, the MWP order will be rejected. Market with protection orders are acceptable only after market open.
For more information about the protection points, please refer to “Protection points for regular trading session products ” and “Protection points for after-hour trading session products ”
Limit orders can be specified as Immediate-or-Cancel (IOC orders must be filled in part or in whole immediately; any remaining quantity is eliminated), Fill-or-Kill (FOK orders are canceled if not immediately filled for the total quantity), or Rest-of-Day (ROD orders are intended to be active during that trading session until they are completely executed or canceled). Market orders and market with protection orders must be specified as either IOC or FOK.
The TAIFEX Futures Trading System (FTS) allows customers to place calendar spread orders. A calendar spread order is an order to simultaneously buy and sell futures of the same underlings but with different expiration dates. The FTS accepts the input of calendar spread orders only after market open.
The minimum price fluctuation (minimum tick) of a futures calendar spread or an options combination order mirrors the minimum tick of the underlying futures or options contracts. In cases where the ticks of the underlying contracts are tiered, the tick of the smallest tier will be adopted. For equity futures, the minimum price fluctuation of a futures calendar spread is 0.01(the tick of the smallest tier for equity futures).
The TAIFEX Options Trading System (OTS) allows customers to buy or sell single option series or make combination orders. A combination order is an order constructed of multiple option series, or ‘legs’, but executed as a single transaction. The OTS accepts the input of combination orders only after market open. The following five combination orders are acceptable: price spreads, time spreads, straddles, strangles and conversions/reversals. Orders may be placed by inputting the difference or the sum of the prices of the two option series. Currently, only FOK or IOC combination orders are accepted. The OTS does not accept ROD combination orders. Thus if a combination order is not filled immediately, it is cancelled automatically.
5.Orders, Matching, and Information Disclosure
Before market open, the system accepts orders, and discloses the total number of bid/ask orders, the cumulative quantity of bid/ask orders, the calculated opening prices and volume, the best 5 bid/ask prices and corresponding volumes of simulated matching every 5 seconds for each contract. In addition, 2 minutes prior to opening of trading session, orders can only be entered, but not deleted or modified. During market hours, the system disseminates a snapshot of prices/volume of best five bid and ask and each matched price/volume. The disclosed information includes the opening price, closing price, market price, execution volume, number of contracts, bid/ask order prices and order volume, daily high and daily low of each contract, and total contracts executed.
|Item||Prior to Market Open||Trading Hours***|
|Matching Methods||Call auction||Continuous Matching|
|Information Disclosure||Displays the total number of bid/ask orders, the cumulative quantity of bid/ask orders, the calculated opening prices and volume, the best 5 bids/ offers prices and corresponding volumes of simulated matching every five seconds for each contract||Display a snapshot of prices/volume of best five bid and ask and each matched price/volume.|
|Order Type||Market Orders||Limit Orders||Market Orders||Market with Protection Orders||Limit Orders|
|*2 minutes prior to opening of trading session, orders can only be entered, but not deleted or modified.
**Prior to opening of regular trading session : orders are accepted from 7:45 to 8:00 for TOPIX Futures, and orders are accepted from 8:30 to 8:45 for other products.
***Prior to opening of after-hours trading session : orders are accepted from 14:50 to 15:00 for those products’ regular trading session ends at 13:45. In addition, orders are accepted from 17:15 to 17:25 for those products’ regular trading session ends at 16:15,.
****Trading hours are different for each product. Please refer to each product's description.
*****ROD orders are only active during that trading session
******The price of an order to buy or sell a futures or an options contract must comply with the minimum price fluctuation specified in the trading rules of the contract.