SECTION 4: LIMIT ORDER TYPE
Figure 71 - Order Entry
Before completing a limit order, users must provide the following information:
- Daily/GTF/GTC and
- Limit Price/Stop Price/OCO.
DAILY/GTF/GTC
If users choose:
- The “Daily” radio box the limit order will be effective within the current trade day.
- The “GTF” (Good-Till-Friday) radio box, the limit order will be effective till the coming Friday.
- The “GTC” (Good-Till-Cancel) radio box, the limit order will be effective till users cancel the limit order.
Limit orders will be automatically cancelled by the system once they are no longer effective (i.e. when the chosen effective period has expired).
Users can always review all limit orders in the “Limit Open Log” (refer to section 2.9.2) or the “Limit Settle Log” (refer to section 2.9.4).
LIMIT PRICE /STOP PRICE/OCO
Limit Price is used when users wants to wait until the market goes into a more favourable condition. When the market price hits the limit price, the corresponding limit order will be executed.
For an effective Buy (Sell) Limit Order, the limit price must be at least a certain number of pips below (above) the current market Ask (Bid) price – Pips Differentials.
Stop Price is used to close out a position in order to stop loss or profit or to wait until the market goes into a more extreme condition, in order to open a new position if the price moves in the opposite direction by a certain amount of pips. When the market price hits the stop price, the corresponding stop order will be executed.
For an effective Buy (Sell) Stop Order, the stop price must be at last a certain number of pips above (below) the current market Ask (Bid) price – Pips Differentials.
The interpretations of the Limit Price and the Stop Price, depending on whether the
Limit Open is a Buy Order or a Sell Order, are summarised below: For a Buy Order:
- Limit Price must be lower than the current Ask Price.
- Stop Price must be higher than the current Ask Price. For a Sell Order:
- Limit Price must be higher than the current Bid Price.
- Stop Price must be lower than the current Bid Price.
OCO (One-Cancels-the-Other) order types are the combination of both limit orders and stop orders. Users need to input both the limit price and the stop price for this kind of order. When the market price hits either the limit price or the stop price, the corresponding order will be executed. However, the remaining order at the other price level will be cancelled automatically.
Setting a Limit Price:
When users want to enter the limit price only, after selecting Buy or Sell, and the Limit type, they can check the limit price radio box to enter a limit price.
Figure 72 - Auto fill Limit Price
Before users fill in the limit price, the system will automatically fill the box with the “minimum” limit price, which is the value that meets the pip differential requirement for setting a limit price.
Setting a Stop Price
When users want to enter the stop price only, after selecting Buy or Sell, and the Limit type, they can check the stop price radio box to enter a stop price.
Figure 73 - Auto fill Stop Price
As with the limit price, the system will calculate the pip differential and automatically fill in the stop price box.
Setting an OCO:
When users want to create an OCO limit order, after selecting Buy or Sell, and the limit type, they need to check the OCO checkbox.
Figure 74 - Auto fill for Oco
Again, the system will calculate what the limit price and stop price are and automatically fill in the boxes.
Although the system automatically fills in the limit/stop price, users can still change this price by entering directly into the limit price box or by using the up and down arrows next to the box.
If the number in the text box is grey, this means that the inputted limit or stop price meets the required pip differential and is valid. However, if the number shown is red, this means that the limit or stop price is not valid or is no longer available.
If the limit or stop price is not valid or no longer available, users must adjust the value accordingly. This can be done manually by either entering a new number into the box or using the arrow buttons, or it can be done automatically by clicking on the “Set Limit/Stop Price As” button. This button will automatically set the limit/stop price at the new price that fits the pip differential.
Figure 75 - Set as a Valid Price
To make a Limit Open order, users must click the “Submit” button to confirm the order.
