Limit Order – Price Sensitive
This is the amount that you are willing to pay (buy) or accept (sell) a given rate for a security.
- If the current price is better than your limit order level, the order is executed.
- If the price is less favourable than the limit order your trade will not execute.
Market Order – Time Specific
This is an order than needs to be executed without delay. It implies that the price is of secondary importance to the deal being executed.
Stop Loss Order
A stop loss order indicates that as soon as the market is traded, at the price stated by you, webIRESS will execute the order at a specific limit price.
Fast-moving markets, however, can move through the stop price before you have time to transact. In this case, the execution or dealt rate might differ from the stop-loss price asked for. This is called ‘slippage’.
Stop-loss orders:
- Allow you to try and limit your loss or to protect an unrealised profit.
- Can also be used to protect you against price rises – an investor with a ‘bearish’ view might place a stop-loss order to protect against a rise in price.
One cancels other (OCO)
This is a combination of two stop orders:
- A stop-loss
- An order at a specified price to take profits
In this situation, once one of the orders is completed, the other unfilled order is automatically cancelled.
Good till cancelled
This order does not lapse at the end of the day, but remains in the market until it is filled or cancelled by you.