Conditional Orders are automatically submitted if specified criteria are met. Traders will need to specify a trigger price based on either the Limit Price or the Best Bid Price, to activate the orders. This is an advanced strategy that is more suitable for experienced traders.
Conditional orders do not have any margin requirements until the trigger price has been triggered. Traders can place any conditional orders successfully but if there is insufficient margin at the point of triggering, the system will automatically reject the order.
Two types of conditional orders are offered:
1. Conditional Limit Order
Limit Orders will only be placed in the order book when the Market Price hits the pre-set trigger price.
2. Conditional Best Bid Price Order
Best Bid Price Order will be executed when the Market Price hits the pre-set trigger price and the Conditional Best Bid Price Order will be placed the best available price. Unfilled portion will be shown on the Limit Price Order.
Conditional orders types below are commonly used.
Stop Orders or Stop-Loss Order
Trades can use conditional best-bid price order or conditional limit order to set up a stop on an order. For buy stop orders, the trigger price must be better than the Limit Price or the Best Bid Price and for sell stop orders the trigger price will be worse than the Limit Price or the Best Bid Price.
A stop-loss order is an instruction to close your position to limit the loss. Traders can choose the "Close Positions Only" when they make a conditional order. By using conditional order, we can customize the stop-loss order as a stop loss limit order and giving us the flexibility to partially or fully close a position.
A Take-Profit Order can be achieved by using a conditional order with a trigger price set at better than current Limit price or the Best Bid Price along with the desired quantity of contracts, allowing for partial or full closure of a position.
- To ensure the execution of your Stop-Loss order or your Take -Profit Order without getting extra positions, please consider selecting the "Close Positions Only" option.
- Conditional orders may not be triggered due to any price limitations, position limitations, insufficient margin, invalid contract status, system errors. Triggered conditional orders is the same as a limit order, may not be filled immediately, unfilled orders are shown under the Open Orders.