Types of Orders
To assist our customers in managing their trading risk we offer a wide range of different order types. These strategy orders can help customers manage the risk on their open positions or enable them to open new positions if the market reaches certain levels.
What is a Market order?
A Market order is an instruction to buy or sell at the current market price. For example, EURUSD is currently trading at 1.25709 / 1.25729, if you want to buy EURUSD at the current price of 1.25729 you can simply click the Buy/Ask Price button and your order will be executed instantly at this price.
What are Limit and Stop orders?
A Limit or Stop order is an instruction to buy or sell if the market price reaches a pre-defined level. The order essentially contains two variables, the price and the duration. The duration is the time period that the customer wishes the order to remain active, after which it will expire.
Limit order:This order is an instruction to either BUY BELOW or SELL ABOVE the current market price, if the pre-defined price is reached during the order duration.
Stop order:This order is an instruction to either BUY ABOVE or SELL BELOW the current market price, if the pre-defined price is reached during the order duration.
Pre-defined order levels must be placed a certain minimum distance away from the current market price. These minimum levels will vary by instrument.
What are Limit Settle orders?
There are two types of Limit Settle orders: Linked Limit and Stop Loss. Limit orders (take profit) or stop loss orders (limit loss) are pending orders that are linked to open positions whose primary purpose is to close an existing open position at a profit or for a loss. These orders can be attached to a market order at the point of placing the market order or after the position has been opened. From the MetaTrader 4 platform, it is possible to set both a limit and a stop loss order at the same time. These orders can be viewed, amended or cancelled at any time. If the open position is closed then any Limit Settle orders that are linked to the position will automatically be cancelled.
What are Limit Open orders?
There are two types of Limit Open orders: Limit Open and Stop Open. These are limit or stop orders that are designed to open a new position when the price reaches a pre-defined level. If you want to SELL below or BUY above the current price you would place a Stop order and if you wanted to BUY below or SELL above the current price you would place a limit order. These orders can be viewed, amended or cancelled at any time.
Clients have access to a hedging facility within the MetaTrader 4 platform. A hedge trade is a way of insuring an investment against future risk. So if you have an open Forex position which you feel has encouraging future prospects but you anticipate the currency pair may reverse against you in the short term, you may want to neutralize this short term risk by hedging your position by making an opposite trade to the existing open position. This hedging function enables AUSFOREX traders hold a long and short position in the same instrument at the same time.
It is possible to choose different lengths of time that an order remains active in the market.
Daily:A Daily order remains active in the market until the end of the trading day.
GTF (Good ‘til Friday) (GTF)：A GTF order remains active in the market until the end of trading each week.
GTC (Good ‘til Cancelled) (GTC)：A GTC order remains active in the market indefinitely until either the price is reached and the trade executed or the client manually cancels the order.
Advanced Strategy Orders
OCO (One Cancels the Other) (OCO)
An OCO is an order that comprises of both a limit and stop order. If one of the orders is executed the other order will be cancelled. OCO orders can be either Limit Open or Limit Settle.
IF-Done IF-Done Limit Order
An ‘if-done’ limit order allows you to preset the Take Profit and the Stop Loss price for your limit entry order. This is an easy way to place stops and limits on a trade that you anticipate may be opened in the future if a certain price target is reached. If your market entry order is triggered, the If-Done order automatically attaches your pre-defined Take Profit and Stop Loss orders to the live open position.
Trading Order Examples
OCO Limit Price and Stop Price
You open a long position in EURUSD at 1.25729 and decide that you want to take profits if the price reaches 1.26330 but also want to limit your losses if the price trades at 1.25410. You can place an OCO Limit Settle order, above the market, with a Limit Price at 1.26330 and a Stop Price at 1.25410, below the market. If the price reaches 1.26330 first then the open position will be closed at 1.26330 and the Stop order cancelled. If the price was to reach the 1.25410 level first then the open position will be closed at 1.25410 and the limit order cancelled. If the open position is closed either manually or as a result of the order expiring, then both Limit and Stop orders will automatically be cancelled.
EURUSD is currently trading at 1.25709 / 1.25729, and you want to buy if the price reaches 1.25500. You can place a limit order at 1.25500 and if the price reaches that level the trading system will automatically execute the buy order at the best available limit price.
EURUSD is currently trading at 1.25709 / 1.25729, and you want to sell if the price reaches 1.25450. You can place a stop order at 1.25450 and if the price reaches that level the trading system will automatically execute the sell order at the best available limit price.
Trading foreign exchange on margin carries high potential rewards but also high potential risks that may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience and risk appetite. Past performance is not indicative of future results, which can vary due to market volatility. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.