Chapter 04 · Section 4.1

Orders in General

  1. 1Orders1
  2. 2Orders 2
  3. 3Orders- Options vs Securities
  4. 4Option possibilities
  5. 5Four Possible Option Transactions
  6. 6Order - Writer
  7. 7Terminating Obligations
  8. 8Order Format

Orders in General. An order is an instruction to the broker to take certain actions on the options markets for the account of the customer.

Orders on options differ from orders on securities and orders on futures in many ways. There may also be differences between different exchanges on how orders are treated. Some types of orders may be accepted at some exchanges but not at other exchanges. Brokers may also refuse to accept only some types of orders.