Your first sim trade

Everything from Order Filler comes together here, now with the sizing and risk plan from this level. You will place a trade from start to finish on a simulator, a practice account with no real money. Do this many times before real money is ever involved. The goal of a first sim trade is not to make (fake) money. It is to make every click on purpose.

This lesson is platform-neutral. Buttons are named differently on every platform, so match each step to what you see on yours.

Why a simulator

CME describes its own Trading Simulator as a risk-free environment for practicing futures trading, with a price ladder (depth of market), charts, and order tickets for market, limit, stop, and stop limit orders. A simulator decides fills by its own rules, so a sim fill may not match what would happen with real money in a real queue. Use it to learn the mechanics, not to judge whether an idea makes money.

Step 1: Set up

• Confirm the account. Make sure the account selected is the simulated one. Check this before every order, every session.
• Pick the contract. Use a micro, such as MES or MNQ. Check the month code in the symbol (Runner Lesson 9). CME notes many traders choose the nearest expiry, which is usually the most actively traded.
• Check your data. Prices should be live, not delayed (Order Filler Lesson 10).
• Check one-click trading. CME’s simulator, like many platforms, has a 1-click mode that sends orders with no confirmation window. Leaving confirmations on while you learn gives you a moment to catch mistakes.

Step 2: Plan before you click

CME lists the decisions a trader makes before an order: which contract, which expiry, buy or sell, how many contracts, and at what price. Add one more: where you will get out, both for a loss and for a profit. Write the plan down in ticks and dollars, size it with Lesson 4, and check it against your risk plan from Lesson 14.

Example prices, not real quotes, and not a recommendation: buy 1 MES at 6,000.00, stop 20 ticks below (20 x $1.25 = $25), target 40 ticks above (40 x $1.25 = $50).

Step 3: Fill in the ticket

On the order ticket (or the DOM), set:

• Side: Buy or Sell
• Quantity: 1
• Order type: Market, Limit, Stop, or Stop limit (Order Filler Lessons 2 to 4)
• Price: for limit and stop types
• Time in force: CME’s simulator asks for DAY or GTC; choose DAY (Order Filler Lesson 9)
• Bracket: attach your stop and target if your platform supports it (Order Filler Lesson 7)

Read the whole ticket back once before you submit.

Step 4: Submit and watch the states

CME explains that after you submit, the order is checked by your broker, then by the exchange, and only then can it be matched. On your screen that shows up as a sequence:

1. Working (accepted, waiting to fill)
2. Filled, with the fill price
3. Position open, with quantity, average price, and live profit and loss (P&L)

Compare the fill price to the price you expected (Order Filler Lesson 6).

Step 5: Manage

While the trade is open, look at three things: your position (should be 1 long or 1 short), your working orders (should be the stop and the target), and your P&L. If your plan calls for a change, amend the order. CME’s simulator lets you drag a working order to a new price on the price ladder, or amend it in the orders list (Order Filler Lesson 8).

Step 6: Close

CME explains that you close a position by taking the opposite position in the same contract, for the same number of contracts. Long 1 MES? Sell 1 MES of the same month. Your bracket may do it for you when the stop or target fills.

Then check two things:

• Position shows 0 (flat).
• No working orders remain. A leftover stop or target could open a new trade later (Order Filler Lesson 7).

Step 7: Review

Open the trade log. CME’s simulator keeps one as a record of executed trades. Work out the result yourself:

points moved x 4 = ticks; ticks x dollars per tick x contracts = gross P&L

Then subtract fees using the example from Order Filler Lesson 11. Write down one thing you would do differently in the clicking, not the market call.

Key ideas

• A simulator lets you practice orders with no real money, but its fills may not match real ones.
• Before every order: confirm the account, the contract and month, the quantity, and your exit plan.
• Watch the order move from working to filled to position open.
• Close with the opposite order, same contract, same size, then confirm you are flat with no working orders.
• Review every trade in ticks and dollars, after fees.