By jackma 
NinjaTrader is a powerful trading platform used by traders worldwide to analyze markets, execute trades, and manage positions. One of the most important tools for executing trades within NinjaTrader is the DOM (Depth of Market), a feature that allows you to visualize the market’s order book and place limit and stop orders directly within the market’s price action.
Understanding how to use limit orders and stop orders within the DOM is a crucial aspect of becoming a proficient trader. These two order types allow traders to control their entry and exit points more effectively, manage risk, and execute trades efficiently. In this guide, we’ll explore how to place limit and stop orders using NinjaTrader’s DOM, the differences between these orders, and tips for optimizing your trading strategy.
What is the DOM (Depth of Market) in NinjaTrader?
The Depth of Market (DOM) is a real-time tool in NinjaTrader that shows the current market depth—the quantity of buy and sell orders at different price levels. It displays a live, dynamic order book where you can see the market’s bid (buy orders) and ask (sell orders) prices. Traders use the DOM to gauge market liquidity, identify potential support and resistance levels, and place their trades more effectively.
The DOM is an essential tool for day traders, scalpers, and those looking to make quick and informed decisions based on real-time market data. You can access the DOM in NinjaTrader by opening the SuperDOM window, which is the primary interface for placing orders.
Key Order Types in the DOM: Limit and Stop Orders
Before we delve into how to place limit and stop orders in NinjaTrader’s DOM, it’s important to understand the difference between these order types.
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Limit Orders: A limit order is an order to buy or sell a security at a specified price or better. When you place a limit order, you are indicating that you want to buy at a certain price or lower, or sell at a certain price or higher. Limit orders are used when you want to control the price at which you enter or exit the market, but they might not be filled if the market doesn’t reach the price you’ve set.
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Stop Orders: A stop order is an order to buy or sell a security once its price reaches a specified level, called the stop price. Stop orders are often used for risk management, as they help limit potential losses or lock in profits by triggering a market order once a specific price level is breached. There are two common types of stop orders: stop market orders and stop limit orders.
How to Place Limit Orders in NinjaTrader’s DOM
Limit orders allow you to control the price at which you buy or sell a security. These are the most commonly used orders in day trading and are especially helpful when you have a specific entry or exit point in mind. Here’s how you can place a limit order using the DOM in NinjaTrader.
Steps to Place a Limit Order:
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Open the SuperDOM Window: In NinjaTrader, go to File → New → SuperDOM. This opens the DOM window, where you can view the order book, price levels, and place your orders.
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Select the Desired Contract: From the SuperDOM window, select the instrument or contract you wish to trade. For example, if you’re trading E-mini S&P 500 futures, select the appropriate symbol from the instrument list.
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Set Your Limit Price: In the DOM window, you’ll see the bid prices on the left (the highest price buyers are willing to pay) and the ask prices on the right (the lowest price sellers are willing to accept). To place a limit order, click the bid or ask price where you want to enter the trade. This will automatically populate the price field for your order.
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Enter the Quantity: After selecting your price, specify the number of contracts (or shares) you want to buy or sell. You can adjust the quantity using the quantity field in the DOM window.
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Choose Buy or Sell: Click the Buy button for long (buy) orders, or the Sell button for short (sell) orders. Your limit order will be placed at the selected price.
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Review and Confirm: Your limit order will now be visible in the DOM. The order will remain in the market until it is filled or canceled. You can adjust your limit order by dragging it to a different price level on the DOM.
Tips for Using Limit Orders:
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Market Conditions: Ensure the price you select for your limit order is reasonable and in line with current market conditions. If the market price is too far away from your limit order, it may never get filled.
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Order Size: Be mindful of the size of your limit orders. Large orders may move the market or cause slippage, while smaller orders may not get filled if the liquidity at that price is low.
How to Place Stop Orders in NinjaTrader’s DOM
Stop orders are essential for risk management and trade execution. A stop order becomes a market order once the price reaches the stop level, and it’s commonly used to exit a position if the market moves against you.
There are two types of stop orders you can place in NinjaTrader’s DOM: stop market orders and stop limit orders.
Stop Market Orders:
A stop market order is an order to buy or sell a security once the price reaches a specified stop price. Once the stop price is hit, a market order is sent to the exchange and executed at the best available price. This is typically used to limit losses.
Steps to Place a Stop Market Order:
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Select the Desired Contract: Just like with a limit order, first select the instrument or contract you wish to trade.
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Set Your Stop Price: To place a stop market order, right-click on the DOM at the price level you want to use as the stop price. For example, if you’re setting a stop loss for a long position, you’ll select a price below the current market price.
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Choose Stop Market: When you right-click on the price, a menu will appear. Select Buy Stop Market or Sell Stop Market from the options, depending on whether you are placing a stop order for a long or short position.
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Confirm Order: The stop market order will now be visible in the DOM, and once the market price reaches your stop price, the order will automatically convert to a market order and be executed.
Stop Limit Orders:
A stop limit order works similarly to a stop market order, except that it becomes a limit order once the stop price is triggered, rather than a market order. This means that the order will only be filled at the stop price or better.
Steps to Place a Stop Limit Order:
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Select the Desired Contract: Select the instrument you wish to trade, just as with the other order types.
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Set Your Stop Price: Click on the price level where you want the stop order to be triggered.
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Choose Stop Limit: Right-click on the price level, and select Buy Stop Limit or Sell Stop Limit depending on your trade type.
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Enter Limit Price: A pop-up window will appear, prompting you to enter your limit price. This is the price at which the stop order will become active once the stop price is hit.
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Review the Order: Your stop limit order will now be visible in the DOM. Once the stop price is reached, the order will trigger a limit order at the specified limit price.
Tips for Using Stop Orders:
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Risk Management: Stop orders are essential for limiting potential losses. Ensure that your stop levels are set appropriately based on market conditions and your risk tolerance.
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Slippage Consideration: Stop market orders can be subject to slippage, particularly in volatile markets. Stop limit orders can mitigate this risk, but they may not get filled if the market price moves too quickly.
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Order Visibility: Ensure your stop orders are visible in the DOM and can be easily adjusted if needed.
Conclusion: Mastering Limit and Stop Orders in NinjaTrader’s DOM
Understanding how to place limit orders and stop orders in NinjaTrader’s DOM is an essential skill for any trader. These orders allow you to control your entry and exit points, manage risk, and execute trades efficiently in real-time market conditions. Whether you are using limit orders to control your buying and selling prices or stop orders to manage your risk and lock in profits, mastering these order types will significantly improve your trading strategy.
By using the DOM’s intuitive interface and understanding the difference between these order types, you can trade more effectively and confidently in the fast-paced world of financial markets. With practice, you’ll be able to place orders quickly, adjust them in real-time, and manage your trades more effectively, allowing you to stay ahead in the market.
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