How to Use a Step to Market Order (Options)

A Step to Market order can be used with any single or multi-legged option order. The Step to Market order automatically modifies the order from a selected starting value in the spread toward the Market. Select the starting value and the time span over which the order will be modified and the program does the rest. The idea behind this order is to attempt to get a more favorable fill than the Market price. If no preferable fill is available the order will go to the Market.

1. Click the Opt (options) button at the bottom of the price pane to open the Option Strategies menu

2. Select Long Call from the Menu

The example used here is buying a long call. However, any of the strategies in the list can accommodate a Step Limit order.

This places the On-Chart Order Ticket at the left of the chart with the fields pre-filled based on the user-defined default option buy ticket.

3. Choose the Step to Market order from the Order Type drop down menu.

Click the order type drop down arrow.

Select Step to Market  from the drop down menu.

4. Set the initial limit price desired for the order

Set the beginning of the slider at the limit price desired anywhere within the Far-Natural spread for the initial order (optional). This will be the limit price at which the order will be entered.

Over the predetermined time period the price offered will be automatically modified up from the initial entry price toward the Natural price. The step order will attempt to secure a preferable fill price in this process. Modification stops if no preferable fill is received and the price then moves to the Market.

5. Click Buy button

Click Place Order to confirm

Note: One disadvantage of stepping toward the natural (and/or market price) is that if the market moves against you while stepping, you could get a worse price than if you had just bought at the market initially.

The trading tools work on either a LIVE brokerage account or a PAPER (simulated) trading account. Live market trading requires an account with TC2000 Brokerage (