How to place an order
Let's do a bit of time traveling and assume you've finished this book, you've done your homework, you've opened an account with a commodity broker, and you're ready to place your first trade. What's the procedure? Very simply, you need to instruct your broker (either by telephone or by Internet order entry) which commodity you want to trade, the quantity (in terms of numbers of contracts), the month, and whether you want to go long or short. You then need to tell your broker how you want your order to be executed.
This is an order to buy or sell at the prevailing price. By definition, when a commodity is bought or sold “at the market,” the floor broker has an order to fill immediately at “the next best price,” ...