Uncovered Options Trading System
Market Order: Market Order is an order to buy or sell a futures or options contract at whatever price (in opposite to Limit order where price is specified) is obtainable when the order reaches the trading floor.
Limit Order: Limit Order is an order in which the customer specifies a minimum sale price or maximum purchase price, as contrasted with a market order, which implies that the order should be filled as soon as possible at the market price.
Day Order: Day order is an order that if not executed expires automatically at the end of the trading session on the day it was entered. There may be a day order with time contingency. For example, an "off at a specific time" order is an order that remains in force until the specified time during the session is reached. At such time, the order is automatically cancelled.
Stop Order: Stop Order (sometimes referred to as stop loss order) is an order that becomes a market order when a particular price level is reached. A sell stop is placed below the market, a buy stop is placed above the market.
Electronic Order: Electronic Order is an order placed electronically (without the use of a broker) either via the Internet or an electronic trading system.
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Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.