For example for the purchase of contracts at or below $1.50 (suggested
entry price) a limit order can be placed to buy at $1.50. There is, however, always the
possibility that not enough trades go through at that price and the
order remains unfilled. On the other hand, the System will initiate a
position, regardless of whether or not the particular order was
filled. If an investor wait for the order to be filled later the same day or
even the following day, the order might still be filled; however,
there is the likelihood the price will not go lower, but move higher
instead. An investor would then be unable to participate in this particular
trade while System would post a profit. If buy limit order
is placed $0.05 above the suggested entry price
(i.e., at $1.55 in this particular example), the fill will be
guaranteed, assuming at least one trade does go off at $1.50 (i.e., at
the suggested entry price). If this happens, the System initiates a
position at $1.50, while the order is filled at $1.55, which means
your profit will be slightly diminished. But buying $0.05 above the
suggested entry price can have a benefit: it is possible that your
order will be filled, yet the price does not reach the suggested
entry price, but moves higher instead. This is to advantage: the
system �missed� the trade while an investor can profit from it and then wait
for the next trade signal.
In conclusion:
- In cases where the suggested entry price is hit,
having placed the buy order at a slightly higher price will reduce
the profits somewhat, but guarantee that the order will be filled;
- In situations where the suggested entry price is
never reached, having placed the buy order at a slightly higher
price enables to take advantage of a trade, whereas the System
does not establish a position.
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