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Types of Orders
Limit orders
The
client places these orders if they wish to buy or sell a
product at a price that is currently better than the
prevailing market has to offer. The order must be placed
at least the minimum distance from the current market
price. The Trade Center will note this distance clearly
so you know how to place the Limit Order. When the
market touches the required level the deal is
automatically executed for the client. These orders are
placed with the aim to get a better price than the
current market. Such orders can be cancelled and amended
by the clients whenever they wish as long as the price
is further from market than the minimum distance
allowed.
e.g. Current
USDJPY market is 105.90, A client may
place an order to buy 5
USDJPY @ 105.00
Stop
orders
These
are placed to restrict and limit the loss of an open
position. These are commonly placed after a new position
has been taken to limit loss if the market moves against
the clients open position(s). If the market moves in
favour of the client the stop order can easily amended
at any time so that it locks in any profit. However, the
main point of these orders is so that the client is
protected against a serious loss if there is a sudden
move in the market, against his position. Again, these
orders can be cancelled and amended by the clients
whenever they wish as long as the price is further from
market than the minimum distance allowed. e.g. Current
GBPUSD
market is 1.8140, A client may place and order to sell 1
GBPUSD
@ 1.8050
One
Cancels Other order
This
is simply an order that has both a stop price and a
limit price. If one is executed the other one is simply
cancelled. This ensures that the client is ready for the
market to move for or against him. Avoiding a large loss
if the market
moves against him and ensuring profit if
the market moves in his favour. e.g. Client may be open
Long 1 USDCHF
@ 1.2470. He can place an OCO order to sell 1
USDCHF @
1.2400 stop
and to sell 1
USDCHF @ 1.2520
limit,
under the same order number.
Market
on Close Order
This
is an order that will be executed for an account at the
market close price, mostly used when accounts need to
liquidate to bring their accounts to the necessary
margin requirement level.
Good
till Cancelled Orders
These
are GTC orders and mean that they must be rolled forward
onto the next day until they are
cancelled, executed or until the market closes for the
weekend or a
holiday.
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