Types Of Orders

Limit and stop orders will no longer be associated with any particular opened position held within the market. Instead, each stop or limit order will be a stand alone order that the Deal Desk will be obligated to execute once the appropriate level is reached and your overall position within the market duly adjusted to reflect. OCO orders (One Cancels Other) is an exception in that if one level is reached the other level associated with the order will be cancelled

Market Order - An order to buy or sell which is to be filled at the price immediately available; the current rates at which the market is dealing.

Example: If you are looking to place an order for JPY when the dealing price is 124.00/05, a market order will request to buy JPY at 124.00 or will request to sell JPY at 124.05.

Stop Order - An order that becomes a market order when a particular price level is reached and broken. A stop order is placed below the current market value of that currency.

Example: If you have an open buy JPY position, which you bought at 124.00 and you want to set a stop order in case JPY’s value starts to depreciate (to stop your loss). Since the JPY’s currency appreciates when the dealing rate moves from 124.00 closer to parity with the USD (102 JPY/1USD), a movement in the opposite direction would necessitate a stop order. For instance, you could set a stop order rate to sell JPY at 124.50, thus closing your position at a 50-pip loss.

[Warning: During volatile market conditions, stop orders may not be executed at the exact rate(s) specified.]

Limit Order - An order that becomes a market order when a particular price level is reached. A limit order is placed above the current market value of that currency.

Example: If you have an open buy JPY position, which you bought at 124.00 and you want to set a limit order to protect your profit, you would set a limit order at a number, which indicates that JPY has appreciated, such as 123.5. When the market reaches 123.5, your position will automatically be closed, resulting in a 50-pip gain.

OCO Order – One Cancels Other. An order placed in order to take advantage of price movement, which consists of both a Stop and a Limit price. Once one level is reached one half of the order will be executed (either Stop or Limit) and the remaining order canceled (either Stop or Limit). This type of order would close your position if the market moved to either the stop rate or the limit rate, thereby, closing your trade, and, at the same time, canceling the other entry order.

Example: If you have an open buy JPY position, which you bought at 124.00 and you want to set a limit and a stop order, you could place an OCO order. If your OCO limit rate was 123.5 and OCO stop rate was 124.50, once the market rate reaches 123.5, the original JPY position would be closed and the stop rate would be canceled.

If Done Order – If Done Orders are supplementary orders whose placement in the market is contingent upon the execution of the order to which it is associated.