Sunday, January 12, 2014
Market Orders:
A market order is an order to buy or sell which is to be filled immediately at the current exchange
The dealing desk responds to market orders in under 10 seconds during normal market conditions. During heavier market conditions, market orders are processed in less than thirty seconds. Clients do not wait more than thirty seconds in order to have their trade confirmed or to receive a new price on which to deal.
The dealing desk responds to market orders in under 10 seconds during normal market conditions. During heavier market conditions, market orders are processed in less than thirty seconds. Clients do not wait more than thirty seconds in order to have their trade confirmed or to receive a new price on which to deal.
Entry Orders:
An entry order is an order that is executed when a particular price level is reached and/or broken. The execution of these orders are under the supervision of the dealing desk and remain in effect until the client cancels the order. Entry orders fall into two broad categories and are executed according to the category.
Stop Entry Orders:
Stop entry orders are executed when the exchange rate breaks through a specific level. The client placing a stop entry order believes that when the market's momentum breaks through a specified level, the rate will continue in that direction. The execution of a stop entry order may involve a limited degree of slippage, usually two pips or less.
Limit Entry Orders:
Limit entry orders are executed when the exchange rate touches (not breaks) a specific level. The client placing a limit entry order believes that after touching a specific level, the rate will bounce in the opposite direction of its previous momentum. Limit entry orders are always executed at the specified level.
Stop-Loss Order:
A stop-loss is an entry order linked to a specific position for the purpose of stopping the position from accruing additional losses. A stop-loss order placed on a Buy position is a stop entry order to Sell linked to that position. A stop-loss order remains in effect until the position is liquidated or the client cancels the stop-loss order. The execution of a stop-loss order may involve a limited degree of slippage, usually two pips or less depending on market conditions.
Limit Order:
A limit order is a limit entry order linked to a specific position for the purpose of locking in the gains on an existing position. A stop-loss order placed on a Buy position is a stop entry order to Sell that position. A stop-loss order remains in effect until the position is liquidated or the client cancels the stop-loss order. Limit orders are always executed at the specified level.
