Limit and Stop Orders
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A Limit order is an order in which the customer specifies a price limit or another condition, such as the time of an order, as contrasted to a Market order, which implies that the order should be filled as soon as possible. The client specifies a price and the order can be executed at the prevailing market price only if the market reached the specified price. A Limit order is an order to buy or sell at a better price to where the market is currently trading.
A Stop order is an opening or closing order to buy or sell at a worse price to where the market is currently trading. The customer specifies the price level that will trigger the execution. Once triggered, the Stop order will execute as a Market order, meaning that it will execute at the first price that could be obtained on the market, rather than the one specified. During normal market conditions, it is likely that the price specified will be the same as the price of execution. However, it could be significantly different, especially when there is high volatility or the liquidity is low.
Both Limit and Stop orders can be placed through the New Order Window.
They can also be attached to a position rather than placed as separate orders. In order to do achieve this, you need to right-click on the position you wish to attach a Limit/Stop or a Trailing Stop order to, and then choose the Limit/Stop option from the drop-down contex menu.You can also click Set in the Take Profit or Stop Loss columns.
It opens a dialog from where you to attach a Limit/Stop order or a Trailing Stop order to this position:
Note: If the position is opened with Conditional Logical order you will see the Conditional orders button in bottom-right corner, where you can track how this Logical order is formed.
In this dialog no quantity is specified. While a normal Limit/Stop order will execute only for the given quanity, the Limit/Stop levels attached to a position are applied to the whole position, so that when the quantity of the position is changed, those levels will apply for the new quantity. In case the position is closed or reversed by the client, the Limit and the Stop attached to it will be cancelled. If either the limit or the stop level is reached, the position will be closed and the other one will be cancelled.
There is also another type of Stop order that can be attached to a position, it's called a Trailing Stop.
Note: If you change the calculation (in the currency of the instrument or the currency of account) of the Profit/Loss (double click on Currency column) in the Positions window, you will change the calculation of the P/L for Limit/Stop in the Stop/Limit to an open position window.
You can alter a Limit/Stop order attached to a position directly from the chart of the position's instrument. To do so, open the instrument's chart and press the Show Limit-Stop-Position button located on the speed bar. To change the level of a Limit/Stop, click once on the line representing either the limit or stop level to select it. Two small green squares appears to indicate that line it is selected and can now be dragged. Now all you have to do is drag it to the new level and the change will be reflected in the Positions window.
After setting the new levels, a confirmation dialog appears, in which you can confirm or reject the change in the Limit/Stop order.
Confirm limit/stop chage