Series 3: 1.3.4.2. Filling Out An Order Ticket

1.3.4.2. Filling Out an Order Ticket

A futures transaction usually starts at the office of a futures commission merchant (FCM). An investor examines the market with her FCM and places an order. Before the order can be executed, the FCM must fill out an order ticket, also called an order memorandum. This ticket must include:

• Commodity

• Buy/sell: whether the order is a buy, sell long, or sell short

• Delivery month and year

• Order size (number of contracts to be bought or sold)

• Execution price

• Ty