Market with Protection Orders

This order type is useful for futures traders using Globex. A Market with Protection order is a market order that will be cancelled and resubmitted as a limit order if the entire order does not immediately execute at the market price. The limit price is set by Globex to be close to the current market price, slightly higher for a sell order and lower for a buy order.

Please note that this order type is not available in TWS PaperTrader.

Example

Order Type In Depth - Market with Protection Buy Order

Step 1 – Enter a Market with Protection Buy Order

You place a Globex-directed futures order to buy 3 March contracts, with the current market price at $1102.25. Select MKT PRT in the Type field to specify a market-with-protection order. Submit the order. If the entire order does not immediately execute at the market price, the unfilled portion of the order will be cancelled and resubmitted as a limit order.

Step 2 – Order Transmitted

You've transmitted your market with protection order. If the entire order does not immediately execute at the market price, the unfilled portion of the order will be cancelled and resubmitted as a limit order.

Step 3 – Order is Partially Filled as a Market Order

One contract executes at the market price of $1102.25. The rest of your order is cancelled, but will be resubmitted as a buy limit order at a limit price set by Globex, slightly lower than the market price for a buy order.

Step 4 – The Rest of the Order is Filled as a Limit Order

The cancelled portion of your order, two futures contracts, has been resubmitted as a limit order. The order fills at 1102.25.