How to Place an Order

Explanation of the Limit Order

By default, the type of order placed on is a limit order.  Limit orders help members control the price of the fractions they buy and sell.  A limit order is an order to buy or sell at a specific price or better; i.e. to sell a fraction at no less than a specific price or to buy a fraction at no more than a specific price.  Limit orders on have a two-month validity.  If after two months there is no counter offer that matches the buy or sell order, the order will be canceled.


The member should note that orders are executed in the order they are received.  If several limit orders are placed at the same price and the market price reaches that price level, the limit orders will be executed in the order they were received for the quantities available.  That means that if there were already limit orders placed before the member places his or her order, the order of that particular member may not be executed even though the price reached the level set by the limit order.  


In addition, if the member modifies his/her order, the modified order is considered as a new order with a new timestamp.  Therefore this modified order will be placed at the end of the line of orders waiting to be executed.



A member wants to purchase 100 fractions.  Let's say the current price quotation for 0.001 carat fractions is $22, which this member believes is a bit too expensive.  S/he can place a limit order to buy 100 fractions at a price of his/her choosing (for example $21).  If the market price of a fraction falls to $21 or below, the order will be executed and the member will receive his/her fractions at market price.  If instead the price remains above $21, the order is not executed.  The member can decide how long the order will be valid; if the price does not fall to $21 or below within the given timeframe, the order will be canceled.  

Placing a buy order


Once signed in, a member can buy fractions using the trading panel on the right side of the screen.  On the “BUY” tab the member can choose the number of fractions (“millicarats”) s/he wants to buy either by clicked on the + and - buttons or by typing the number in the box.


In the same manner s/he can choose the maximum price s/he wishes to pay.  The total for the order is calculated automatically below the unit price.


The member can then click the green “BUY” button at the bottom of the trading panel.


Next, a confirmation box will appear with the order details.  Once the member has verified that everything is correct, s/he will click “confirm” to place the order.  If the details are not correct, s/he can click “cancel” and correct the order from the trading panel.  

Once the order is confirmed, the order list will appear showing the status of the order.  “Opened” means that the order has been placed and is waiting for a matching counter offer.  “Closed” means the order has been executed and the purchase or sale has been made.  “Rejected” means that the order could not be processed (usually because there are not enough funds in the account to purchase or not enough fractions in the member’s vault to sell). “Cancelled means that either the member canceled the order or that the order expired (after 2 months).


Open orders can be cancelled by the member by clicking on the red X in the status column. Closed orders may not be cancelled.

Placing a Sell Order


Sell orders are placed exactly the same way as buy orders.  The member must simply select the red “Sell” tab on the trading panel and follow the same procedure for choosing the number of fractions and the price as well as confirming the order.