Options Strategy – Orders Type
The following are the order types available in beeTrader with regard to the automation of the Options Strategy (Hedging and Planning)
|Order Type||Buy Price||Sell Price||Description|
|Market||Ask||Bid||Places a buy order at Ask price, a sell order at Bid price|
|Join||Bid||Ask||Places a buy order at best Bid price, a sell order at best Ask price|
|Improve||Bid + 1 tick||Ask - 1 tick||Places a buy order at best Bid price +1 tick, a sell order at best Ask price -1 tick|
|Split||Bid/Ask Avg||Bid/Ask Avg||Places an order at the Bid and Ask average price, regardless of buy or sell direction|
|Shave||Ask - 1 tick||Bid + 1 tick||Places a buy order at best Ask price -1 tick, a sell order at best Bid price +1 tick|
|Hit & Take||Ask||Bid||Same as Market|
|Hit & Take +||Ask + 1 tick||Bid - 1 tick||Places a buy order at best Ask price +1 tick, a sell order at best Bid price -1 tick.
This order type generates conditional orders.
Smart Move: the Smart Move system allows the sending of an order and its automatic modification if it is not executed. It is always linked to two parameters to be set:
- Smart Move Step (Ticks) which represents the variation between an order and the next one expressed in the minimum tick of the asset. The user must enter the number of steps, the conversion into euros or points is done automatically based on the settings of the ticks that are taken by the broker if they are available, otherwise the ticks associated with the asset in Symbol Manager;
Smart Move Time (secs) which represents the time interval between an order and the next.
This type of order is available in the DOM and for the automatic ordering functions present in Iceberg: Hedging and Planning.
Smart Move in Hedging
The Smart Move order can be selected in the Orders Type section of the wizard. For the future on ENI we select for example the Join order, which as described above inserts the purchase order at the best bid or sale at the best ask, we enable the Smart Move checkbox and set the parameters, in the example the price will be changed every 30 seconds by 10 ticks.
Note: check with your broker for order cancellation costs.
Smart Move in Planning
On the Buy and Sell Action Types you can use the Smart Move. The settings are the same as seen above.
Smart Move special case
As an example we want to activate the Smart Move to buy FTSEMIB options, which is a special case as the minimum tick varies based on the option price. Having coded in Symbol Manager the correct minimum tick variation (as in the image) will beeTrader to evaluate how much to increase the order. If you set the Smart Move to change the order by 1 tick, the order change will be 1 point if the price is up to 100 points, 2 points if the price is between 102 and 500 points and 5 points if the price of the option exceeds 505 points.