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  • Opening Orders

    Opening Orders

    Opening Orders aim to automatically open a new trade at a price specified by you, when the markets are not currently at levels at which you would like to enter into a position.

    There are three types of Opening Orders:

    Limit Orders - An order to open a new trade at a level that is better than the current market price.

    Stop Orders - An order to open a new trade at a level that is worse than the current market price.

    One Cancels the Other (OCO) - An order that allows you to take multiple views on the same market by placing two opening orders, i.e. a Limit and Stop order.

    Opening Limit Order Example

    Say you want to go long and buy the Vodafone Daily Funded Trade (DFT) market at a lower price than is currently being stated on the trading platform, i.e. a better price – you would use a Limit Buy Order to open a new position at a new price stated by you.

    Alternatively, if you wanted to go short and sell the Vodafone DFT market, you would use a Limit Sell Order to open a new position at a higher price, i.e. a better price, than is currently being stated on the trading platform.

    Opening Stop Order Example

    Say you want to go short and sell the Gold DFT market at a lower price, i.e. a worse price, than is currently being stated on the trading platform – you would use a Stop Sell Order to open a new position at a new price stated by you.

    Alternatively, if you wanted to go long and buy the Gold DFT market, you would use a Stop Buy Order to open a new position at a higher price, i.e. a worse price, than is currently being stated on the trading platform.

    One Cancels the Other (OCO) Example

    Say you want to trade the UK 100 DFT using an OCO order – you would attach both a Limit Order and Stop Order either side of the price currently being stated on the trading platform.

    When one of your orders is ‘triggered’ by a new price on the trading platform – for example, your Limit Order – then that Order is executed whilst the other order, your Stop Order, is automatically cancelled.

    Had the Stop Order been triggered first, then that order would have been executed whilst the Limit Order would have been cancelled.

    Next Step: Closing Orders 
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