Trading
Last updated
Last updated
Traders use a DOM (Depth of Market) or price ladder to visualize the order book of a futures contract. It displays real-time bid and ask prices along with the volume at each price level. Here's a concise explanation:
Bid and Ask Levels: The price ladder shows different bid (buy) and ask (sell) levels, helping traders identify supply and demand.
Order Execution: Traders can quickly place, modify, or cancel orders directly from the DOM interface.
Market Depth: It provides insight into market depth, allowing traders to see the liquidity and potential price movement.
Immediacy: Enables fast decision-making and order placement, crucial for active trading strategies.
Using a DOM effectively can help traders anticipate price movements and execute trades with precision. The DOM in ProjectX is configurable to your exact needs and allows customization of the visible buttons, layout, look and feel. For an overview of how to customize the look and feel of the DOM, please see here.
To place a Limit Order from the DOM, simply left click on either the Bid Size or Ask Size column depending on what side of the market you are trading. In the below example, we are placing a Limit Buy order below the current market price by left clicking on the Bid Size column next to the price we are interested in - indicating we want the price to trade down to that level for execution:
A Stop Market order in futures trading is an order to buy or sell a contract once the market reaches a specified price — known as the stop price. When the stop price is hit, the stop order becomes a market order and is executed at the next available price. This type of order is generally used to limit losses or to enter a market on a breakout.
To execute a Stop Market order in ProjectX, simply right click on the desired price level. In the below example, we are wanting to enter a long position at a price trading above the current price, indicating we are looking for a breakout above that price:
You can easily drag and drop your resting orders from the DOM by simply hovering over the Qty, waiting for the crosshair icon to show, and dragging up or down to desired new location:
