Market Orders versus Bids

Market Orders

Market Orders are used for placing an order at the same price as offered by the partner seller. Buyers can place a market order at the seller’s offer price, as long as the following requirements are met:

• The seller has set the offer to be available for market orders.

• The order quantity must be equal to or greater than the minimum order quantity set by the seller.

• The order quantity is in the increments that have been specified by the seller.

• The seller must have sufficient inventory to fill the order.

  If the seller does not have adequate inventory listed on DTN Exchange to fill a market order, the buyer has the option to place a bid for the seller’s remaining inventory. The bid price on the remaining inventory is determined by the seller’s current offer price. Once a trade is matched, it can only be canceled through DTN Exchange by the seller.

Once you have confirmed your market order, the trade happens instantly. DTN Exchange system performs the following:

• Updates the Status column on the Manage Bids tab to match.

• Sends a trade notification of the matched trades to both the buyer and seller.

Bids

You can bid below the seller’s offer price to take advantage of a softening market or quantity discounts. The status of a bid is active on DTN Exchange until it matches or meets the expiration date and time that you specified when creating the bid. Once the bid has been accepted the status becomes matched. While the status is active, you can edit or cancel the bid.

Depending on how the seller has set up their DTN Exchange, a bid can match into a market order when either the seller chooses to accept the bid manually, or when the seller’s offer price moves down to equal the bid price.

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Forward Offers overview

You can use the Forward Offers/Orders page to create and submit a bid or place a market order on a forward offer. The page consists of three views:

• Forward Offers displays active forward offers upon which you may bid or place a market order. The page can also display suspended offers. The display of offers can be filtered by location, product, and seller. Click Bid to submit a bid or place a market order on a forward contract.

• Manage Bids tab displays and summarizes any bids that match the selected criteria for location, product/product class, and seller. The ID number of the bid is displayed along with the status of the bid. You can also use this page to make changes to active bids. (This is the same as the Forward Offers Bid/Trade Summary page.)

• Trade Report tab displays any trades for the specified terminal, product, and seller, and for the specified date range.

 

 

 

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Forward Offers filters

The Forward Offers filters pane allows you to filter through the following:

Field	Description
State	Specifies a state. Select multiple states by holding down the CTRL key. This field defaults to All States.
City	Describes a city. Select multiple cities by holding down the CTRL key. This field defaults to All Cities.
Terminals	Provides a terminal. Select multiple terminals by holding down the CTRL key. This field defaults to All Terminals.
Product Class	Indicates a product class. Select a desired class of product. Once selected, the Product field displays only those products within the selected product class. This field defaults to All Product Classes.
Products	Contains a product. Select multiple products by holding down the CTRL key. This field defaults to All Products.
Seller	Displays only those sellers in your Active Sellers List (as defined through the Seller Request page). Select multiple sellers by holding down the CTRL key while making your selections. This field defaults to All Sellers. This automatically displays information from all sellers for the selected product(s) at the specified location(s). If you have already selected a state, city, terminal, product class, and/or product, the Seller field displays only those sellers that correspond to your database filter selections.   Not all active sellers may be listed in this field. In some cases, a seller may be active but may not have any current offers in the DTN Exchange®. Active sellers can be viewed through the Seller Request page.
Offer Type	Identifies the type of offer to view. Options are: All, Active (default), Suspended.

 

 

 

 

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Forward Offers interface

The Forward Offers pane displays forward offers upon which you may bid or place a market order. The offers can be filtered by location, product, seller, and status. To submit a bid or place a market order on a forward contract, click Bid next to the desired offer.

 

Term	Definition
Product	Describes the product attached to the forward offer.
Terminal	Specifies the terminal attached to the forward offer.
Seller	Provides the seller attached to the forward offer.
Information icon	Displays the Seller’s terms.
Month/Year	Contains the price of the product for the specified month/year.
AVG Price	Identifies the average price of the product across all months of the contract.
My High Bid	Displays your highest bid price, if you have placed one or more bids on a product at the specified terminal. You can use this field to confirm that your bid has been processed by DTN Exchange system, and to compare it against low posted and real time prices

Forward Offers tasks

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Set your filters

Location:  Buyer  >  Forward Offers/Orders  >  Forward Offers

Here’s how to edit a view:

1. Find the items you want to narrow down in State, City, Terminals, Product Class, Products, Seller, and Offer Type.

2. Your view updates automatically.

 

 

 

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Creating a Forward Market Order

Location:  Buyer  >  Forward Offers/Orders  >  Forward Offers

A Market Order is when you are purchasing a product at face value. Whatever price is listed under the Price column is the price you are paying.

 

Here’s how to create and submit a forward market order:

1. Click Bid to the left of the forward offer for which you wish to place an order. The Enter a New Bid window opens.

2. Enter a volume for each month for which you wish to purchase product. The volume must be equal or greater than the Min. Bid QTY (in gallons). The volume must be in an increment that matches the seller’s specified allowed bid increments amount.

  You can submit a market order only for those months that have a check mark in the Auto-Trade Match Allowed row. They must be consecutive months.

3. In the Place Order pane, click Market Order. Your market order confirms at the current market price.

 

 

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Creating and Submitting a Forward Bid

Location:  Buyer  >  Forward Offers/Orders  >  Forward Offers

A Bid gives you the opportunity to ask for a different buying price. Place a bid if you want to try to negotiate a different price to see if any sellers are interested.

 

Here’s how to create and submit a forward bid:

1. Click Bid to the left of the desired forward offer. The Enter a New Bid window opens.

2. Enter a volume for each month for which you wish to purchase product. The volume must be equal or greater than the Min. Bid QTY (in gallons) specified by the seller. In some cases, there may also be a required incremental amount.

3. Enter the desired price per gallon to bid in the My Price field.

4. Click the Calendar icon to select an end date for the bid.

5. Enter a time in the End Time field.

6. Click Bid. Your bid is submitted to the seller and displays in the My Bid Price field of the Forward Offers pane.

To edit or cancel your bid, go to the Manage Bids tab.

  Once your bid has been confirmed, it becomes active. Sellers can review your bid and choose whether or not to accept it. As long as your bid remains unmatched, it is considered active. An active bid can be edited, suspended, or even cancelled. However, once your bid has been matched it is no longer active and can no longer be edited, suspended or cancelled.