Trading Order Types
In trading terminals of IFC Markets the following order types are executed: market, pending, linked, OCO and activated orders. Trailing Stop is realized on server side i.e. operates even when the client's terminal is off
Market order is a client’s command to buy or sell a financial instrument at the current market price. The transaction is performed instantly via the trading platform and at the price shown in the market order window or via telephone at the price quoted by the dealer.
In the market order window the client can set the maximum allowed price deviation of order execution from the requested price. In case of a drastic price change and network delay the position opening is performed in the following ways:
- If the current market price is beyond the specified deviation, the client will be provided with a new market price. In this case the client may accept the new price for the order to be executed.
- If the current market price remains within the set deviation, the position will be opened at this market price.
Pending order is a client’s command to open a trading position at a price different from the current market price.
Types of Pending orders:
- Sell Limit – a sell order at a price higher than the current market price.
- Buy Limit – a buy order at a price lower than the current market price.
- Sell Stop – a sell order at a price lower than the current market price.
- Buy Stop – a buy order at a price higher than the current market price.
When the market price reaches the price set in an order, a deal of buying or selling is triggered. Sell Limit and Buy Limit orders are executed at the price set by the client or at a better price. Sell Stop and Buy Stop orders are executed at the price set by the client, except the cases of price gaps, when the order may be executed at the first price available in the market.
Linked Limit and Stop Orders
There are two main types of orders linked to an open position or a pending order- Stop Loss and Take Profit:
- Stop Loss order is designed to limit possible losses and is set at a price worse than the price of position opening or the price of pending order execution.
- Take Profit is designed to close a position by reaching the targeted profit level and is set at a price better than the price of position opening or the price of pending order execution.
When the price reaches the level set in a linked Stop Loss or Take Profit order, the position is closed automatically.
Linked stop loss and take profit orders are automatically removed when the position is closed or the pending order is cancelled.
Take Profit order is executed at a price set by the client or at a better price.
Stop Loss order is executed at a price set by the client, except the cases of price gaps, when the order may be executed at the first price available in the market.
OCO – One Cancels Other (only in the trading platform NetTradeX)
OCO order is a combination of two pending orders set to open a position at prices different from the current market price. Execution of one of the two orders brings to an automatic removal of the remaining one.
Pending order execution policy is applied to OCO orders.
Activated Order (only in the platform NetTradeX)
Activated order is a pending order that is set when the price reaches the level of activation. Pending order execution policy is applied to activated orders.
Trailing Stop Mode
Trailing Stop mode maintains the mechanism of automatic shift of a linked Stop Loss order according to the following rule: if the profit of a position becomes higher than the set fixed distance, the Stop Loss order moves to the level on which the difference between the current market price and order price is equal to this distance.
In case the Stop Loss order has not been initially set, but the Trailing Stop mode has, the Stop Loss order is set automatically at the price of position opening when the profit becomes equal to the distance specified in the mode.
In the trading platform NetTradeX Trailing Stop is a server-side mode which remains active even when the client’s terminal is turned off.