Other Elements of Standardized Order Tickets

The other elements that your standardized options order will include are:

The Exchange

You should have the option to designate the exchange where your order will be placed. You may also allow the broker to route the order to the exchange with the best price. This feature matters less and less as markets become more efficient and participants monitor multiple markets simultaneously.

Opening or Closing

This is designated by your broker for convenience. If you believe you are closing (going flat) a position, but the ticket says “opening” or “to open”, you may want to double check that you have not selected the wrong contract, expiration, strike, type, and/or side. Many platforms allow you to select the position that you already have open and create the closing order from there. This helps to avoid mistakes when trying to reverse your position and go flat.

Your commissions and exchange fees

Your broker will charge a commission and should display all other fees related to your transaction. Be sure to verify that you are getting competitive rates. You can shop around for commissions and negotiate with your broker. Asking experienced traders and your trading mentor are great ways to make sure you have fair commission rates for your account size and trading volume.