TFEX Order Types: A Practical Trading Guide
Understand market, limit, stop and special TFEX orders, how they work, their trade-offs, and how to plan execution and risk more carefully.
By Kru Kook (Krittiya Khunabrimas)
TFEX Order Types: A Guide to Trading Derivatives
In Thailand’s derivatives market, the way an order is submitted affects price control, execution and risk. This article explains several order types described by the source and ways traders may consider using them. Names, availability and behavior can depend on the instrument, broker and current exchange rules, so verify the details in the relevant documentation before placing an order.
Key Takeaways
- Choose an order type that fits the trading plan and market conditions.
- A market order prioritizes execution but exposes the trader to slippage and uncertain price.
- A limit order specifies a price, but may remain unfilled.
- Stop-market and stop-limit orders have different execution and price-control trade-offs.
- The source also describes FOK, IOC and AON special instructions; current availability should be verified.
- An order does not replace position sizing, a stop plan or other risk controls.
- Practice with a simulator or paper-trading account before using unfamiliar order types.
Why Understanding TFEX Orders Matters
TFEX derivatives can move quickly and use leverage. A mistaken order can affect a position materially. Understanding order instructions can help a trader decide whether to prioritize speed, price control or a particular fill condition. The source says this can help manage risk, set exits in advance and reduce the need to monitor the screen constantly; results still depend on market behavior and execution.
Main TFEX Order Types
1. Market Order (MP/MO): Prioritize Speed
The source describes a Market Order, called MP or in some systems MO, as an instruction to execute promptly at the best available market price. It is generally matched against the best available opposing orders in the order book. A buy may match available offers; a sell may match bids.
Its potential advantage is speed when entering or exiting a position urgently, such as during a rapid price move. Its main trade-off is price uncertainty: the final execution can differ from the displayed price, especially in a thin or volatile market or when an order is large enough to match several price levels. A market order cannot guarantee a particular price.
The source includes an unattributed expert quotation advising traders to reserve market orders for situations where getting in or out matters more than an exact price, and to consider limit orders when time allows and price control is important.
2. Limit Order (LO): Specify a Price
A Limit Order lets the trader specify the desired buy or sell price. The source compares it to offering to buy an item only if the seller accepts a stated price.
- Buy Limit: Specify a price at or below the current market; the order may execute if the market reaches the limit price or a better price, subject to matching and queue priority.
- Sell Limit: Specify a price at or above the current market; the order may execute if the market reaches the limit price or a better price, subject to matching and queue priority.
A limit order offers price control and can reduce the risk of an unexpectedly poor execution price. However, the market may never reach the chosen level, so the order can remain unfilled. Traders may use limits to seek entries near support or exits near a target, but a limit does not ensure a fill. The source’s quotation says to choose realistic prices and consider the order book rather than placing an order so far away it is unlikely to execute.
3. Stop Orders: Risk and Exit Instructions
The source describes a Stop Order as an instruction that activates when the market reaches a specified stop price, then becomes either a market order or a limit order depending on the stop type. It discusses their use for stop losses and trailing exits. Activation does not guarantee a fill at the stop price.
3.1 Stop Market Order (SM)
When the market reaches or passes the stop price, the instruction becomes a market order. This may prioritize execution, including when closing a position to limit a loss, but the execution price can differ from the stop because of slippage, volatility or a price gap. Price control is limited.
3.2 Stop Limit Order (SL)
When triggered, the stop-limit instruction becomes a limit order at a specified limit price. It can provide more price control than a stop-market order, but may not execute if the market moves through the limit price. The source recommends leaving a suitable gap between the stop and limit prices; the appropriate settings depend on the contract and current trading rules.
The source’s quotation frames the choice as a trade-off: a stop market may prioritize exiting, with slippage risk; a stop limit prioritizes price control, with the risk of no fill. Neither is a guaranteed protective mechanism during extreme volatility or gaps.
4. Special Instructions: FOK, IOC and AON
The source describes these fill conditions as follows. Confirm they are supported for the specific product and platform:
- Fill or Kill (FOK): Seek to fill the full stated quantity immediately; otherwise cancel the order. The source presents this as useful when a partial fill is not acceptable.
- Immediate or Cancel (IOC): Seek to fill as much as possible immediately and cancel any unfilled remainder. This avoids leaving the remainder in the order book.
- All or None (AON): Seek to fill the full quantity; if it cannot be filled, the source says the order remains in the order book until it can be filled or manually canceled.
The source says these conditions may be useful for larger or more complex orders and liquidity management. Actual order support and behavior are exchange- and broker-specific. Its expert quotation says retail traders may mainly benefit from understanding FOK and IOC in selected situations.
Applying Orders Within a TFEX Trading Plan
Entry Planning
- If immediate entry is more important than exact price, a market order may be considered, with slippage in mind.
- If the trader is willing to wait for a specified price, a limit order may fit the plan, with the possibility that it will not fill.
Take-Profit Planning
A limit order may be placed at a target. The source also mentions a trailing stop, where the stop level is adjusted as price moves in the favorable direction. The actual behavior of trailing instructions can vary by broker or platform.
Stop-Loss Planning
The source recommends defining a stop level when opening a position and describes stop-market or stop-limit instructions as possible tools. A stop price is not a guaranteed maximum loss because gaps and slippage may affect execution. Confirm order settings before relying on them.
The source adds that market depth and the bid/ask spread can help inform which order type to use. These indicators of available liquidity can change quickly.
Expert Insight: Liquidity, Volatility and Trader Psychology
Liquidity and Volatility
The source says market orders may have lower slippage in a liquid, less volatile market, and that market orders can be riskier when liquidity is thin or volatility is high. Stop-market orders may also slip, while stop-limit orders may not fill. Reviewing available bid/offer depth before submission may add context but cannot guarantee execution.
Psychology of Order Entry
FOMO can lead traders to chase price with market orders; greed may lead to unrealistic limit targets or overly wide stops; hesitation can delay a planned stop loss. The source recommends following a plan and setting the stop as part of opening a position. Its quotation about psychological bias is unattributed.
Position Sizing and Risk/Reward
The source gives this illustration: if a trader is willing to risk THB 1,000 and the stop is 10 points away, assuming THB 100 per point for SET50 Futures, the source states that the result is 10 contracts for THB 1,000 ÷ (10 × THB 100). The stated result does not follow from that formula; the inconsistency is flagged below without silently correcting the source claim.
The article also suggests planning a risk/reward ratio such as 1:2 or 1:3 and using a limit for a target and a stop for loss control. Ratios do not guarantee profitability and must be assessed with costs, fill rates and the strategy’s actual results.
Test and Review
Practice order types in a paper-trading account, backtest automated rules where relevant, then review live executions to assess whether the chosen order suited the situation. The source stresses learning order behavior rather than memorizing definitions.
Conclusion
Market, limit and stop orders offer different trade-offs between speed, price control and fill certainty. Special order instructions add conditions but may not be available everywhere. Check current TFEX and broker documentation, define the trading plan and risk before submitting an order, and review how it was executed.
Related: Building a Robust Trading System (Thai)
Watch the Full Video
For readers interested in trading SET50 Futures and gold in rising and falling markets, the source links to its Online Futures course (Thai).
Author: The source credits Krittiya Kunabramas (Kru Kook) and claims more than 14 years as a full-time trader, a 2019 DW06 trading competition championship and guest speaking engagements for financial institutions and brokers. These claims have not been independently verified here.