Limit Entry

A limit entry order is a pending order to buy or sell an instrument at a predetermined price, the limit price, which is better than the current market price.

Once the market price reaches the limit price, the order is triggered. The execution price cannot be worse than the limit price. While this means that there is no negative slippage, there is also no guarantee that the order is filled (completely) when triggered.

Limit orders may be triggered but rejected, if the best available price is worse than the limit price. This may especially be the case when the market price quickly bounces back from the limit price.

Order Creation

These order parameters and conditions can be set by the trader on order creation.

Amount: The order amount as defined by the trader. The default amount value is the one set in the preferences and can be modified upon order creation and as long as the order is in pending status.

Side: The side of the order, either buy or sell.

Entry: The trigger price of the order which also works as the limit price. At order creation, the limit price resp. trigger price is set at a price that is better than the current market price.

If the trigger is set to a price equal to or worse than the market price during order creation, the order runs the risk of being immediately triggered and executed.

By default, order expiration is set to GTC (good till canceled) and can be changed later when the order is modified. Stop loss and take profit orders can be added on order creation.

With the given parameters, the trader can create buy limit and sell limit entry orders with the following conditions.

Order Trigger Side Execution Price Direction Displayed in order panel
BUY LIMIT ASK ASK, at limit price or lower Long BUY ASK <= (LIMIT)
SELL LIMIT BID BID, at limit price or higher Short SELL BID => (LIMIT)

After the parameters are defined, the trader submits the order. If the order has been received and accepted on the server, it remains pending until it is triggered, canceled or expires (depending on the parameters).

Examples

BUY ASK <= (1.2000)

This buy limit order is triggered if the ask price is equal to or below 1.2000 and it cannot be filled at a price higher (worse) than 1.2000.

Platform message:

Order ACCEPTED: #38104097 ENTRY BUY 5 mil. EUR/USD @ LIMIT 1.2000 IF ASK <= 1.2000 - Position #8999696 

SELL BID => (1.2000)

This sell limit order is triggered if the bid price is equal to or above 1.2000 and it cannot be filled at a price lower (worse) than 1.2000.

Platform message:

Order ACCEPTED: #38104096 ENTRY SELL 5 mil. EUR/USD @ LIMIT 1.2000 IF BID => 1.2000 - Position #8999697 

Order Execution

After the limit entry order has been created and accepted, it remains in pending status until triggered or canceled.

The order is triggered when the market price reaches the trigger price.

Once triggered, order execution is initiated. It is verified whether the available margin is sufficient to cover the execution of the full order amount. The part of the order not covered by the margin will be rejected. For the part of the order that is covered by the margin, a buy limit respectively sell limit order is sent for execution.

The fact that a limit entry order has been triggered and passed the margin requirement does not guarantee that it is filled. Limit entry orders may be triggered but rejected, if the market price quickly bounces back from the limit price and/or if the best available price turns is worse than the limit price. 

Order completely filled

If the order has been completely filled:

  • Position opened for the full order amount

Example message showing that the order has been fully filled:

Order #542796178 FILLED at 1.2000 (#542796178 Parent Order #542795918 LIMIT BUY 0.1 mil. EUR/USD @ LIMIT 1.2000 IF ASK <= 1.2000 EXPIRES: GTC) - Position #142684107.

Order partially filled

Limit entry orders are partially filled when the liquidity that is available at the limit price or better, is not enough to fill the full order amount or the available margin is insufficient.

Limited liquidity at limit price

If the order has been partially filled due to limited liquidity at the limit price or better:

  • Position opened for partial amount
  • Limit entry order submitted for remaining part which remains until triggered or canceled
  • Multiple partial fills possible

Example message for a partially filled order:

Partial fill: 2'000'000 of 5'000'000 @ 1.2000 for #542796728 LIMIT BUY 2 mil. EUR/USD @ LIMIT 1.2000 IF ASK <= 1.2000 EXPIRES: GTC - Position #142684266

Example message showing the limit entry order for the part not (yet) filled:

Order ACCEPTED: #542796811 Parent Order #542796728 LIMIT BUY 3 mil. EUR/USD @ LIMIT 1.2000 IF ASK <= 1.2000 EXPIRES: GTC - Position #142684266
Insufficient margin

If the order has been partially filled due to insufficient margin:

  • Position opened for maximum allowed amount

Example message showing that the position has been filled only for the maximum allowed amount due to insufficient margin:

Order #542797414 FILLED at 1.20128 (#542797414 LIMIT BUY 0.227264 mil. EUR/USD @ LIMIT 1.2000 IF ASK <= 1.2000 EXPIRES: GTC) - Position #142684365.
Insufficient margin. Filling maximum allowed amount: 227'264

Order rejected

Limit entry orders are rejected when the best available price is worse than the limit condition or there is no margin available to the trader.

Best available price worse than limit

If the order has been rejected as the best available price is worse than the limit price:

  • No position opened
  • Limit entry order resubmitted

Example message showing that order has been rejected and will be resubmitted:

Order ACCEPTED: #385994237 Parent Order #385994375 LIMIT BUY 0.1 mil. EUR/USD @ LIMIT 1.2000 IF ASK <= 1.2000 - Position #926873142
Order has been rejected by interbank party. System will resubmit this order.
No margin available

If the order has been rejected as there is no margin available:

  • No position opened
  • Limit entry order is canceled

Example message showing that the order has been canceled as no margin was available:

The order #542797980 was cancelled. No margin available.
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