The information below describes general trading rights that may be available to you. If you do not have the right to perform a particular function, your screen will not list that function.
An asset is any object traded in a market. Once an asset is opened for trade, it will remain in circulation until it is liquidated. Specific rules related to asset splits, dividends, retirements, liquidations, and trading times are described in the market prospectus.
So that the IEM neither makes nor loses money, assets are placed in circulation by issuing fixed-price-bundles. For instance, a fixed-price-bundle containing 2 assets whose liquidation values will sum to $1.00 can be purchased from the exchange or sold to the exchange for $1.00.
To purchase or sell a fixed-price-bundle, use the market order menu. Choose the bundle name, specify the quantity you wish to trade, and click the "Market Order" button.
Your bundle order will be execute bundle by bundle. If you are buying bundles and do not have enough cash to purchase the entire number of bundles you requested, the order will be processed until you run out of cash. Similarly, if you are selling bundles, your order will be processed until you run out of the assets necessary to form complete bundles. Incomplete and partial bundles will not be processed.
Once bundles are purchased, they can be split up and each asset traded individually. Or, complete bundles can be resold to the exchange for the fixed bundle price.
To place a market order, use the market order menu (the row denoted "1" in the picture above). Choose the asset you wish to buy or sell from the Action/Asset select list ("1" in the picture above), specify the quantity ("2" in the picture above), and then click on the Market Order button ("4" in the picture above).
By default, you will be asked to confirm your market order before it is executed (a picture of the screen is shown below). If you wish to eliminate this confirmation step, remove the checkmark from the confirm box ("3" in the picture above) before clicking on the Market Order button.
Your market order will be executed one unit at a time. If you are buying an asset and do not have enough cash to purchase the entire number of assets you requested, the order will be processed until you run out of cash. Similarly, if you are selling assets, your order will be processed until you run out of the assets you are selling.
Market Orders are executed against your account in one unit increments. Before each unit is traded against your account, your asset and cash holdings rechecked to be sure that you have enough assets and cash to continue the trade. When the remaining portion of a trade becomes infeasible, that portion is cancelled and marked infeasible.
To see a list of all orders that you have placed for a particular asset, use the My Account button at the bottom of the WebEx screen.
Market-price-bundles initiate trades at current market prices (current bids if you place a sell order, current asks if you place a purchase order). The only difference between trading a market-price-bundle and trading its components individually is that the market-price-bundle guarantees that all components of the bundle will trade or no components will trade.
Market-price-bundle orders are subject to the same feasibility checks that are associated with market orders (purchase and sell orders) for individual assets. If a feasibility check fails for any asset in the market bundle, then the bundle will not trade. This means:
Your bundle order will be executed one bundle at a time according to the feasibility checks described above. Market bundle orders that cannot be completed are are cancelled.
Changes in Current Bid and Ask Prices:
Like market orders for individual assets, market-price-bundles trade at current market prices when your order reaches the exchange. If prices change between the time you place your order and the time it reaches the exchange, you order will trade at the new prices.
You can protect yourself from unanticipated price changes by using the confirmation option when you submit a market order. Placing a checkmark in the confirmation box tells WebExchange to check prices before executing the order. WebExchange will then confirm that the price at which your order will trade is not worse that the price you saw when you confirmed the order. For purchases of market bundles, this means that the total price you pay for the order will be no higher then the price you confirmed. For sales of market bundles, this means that the total price for which you sell the bundle will be at least as great as the price you confirmed.