Stop Entry

Triggered orders necessitate a market trigger in order to be sent for execution attempt. For that kind of order, triggers are required to attempt execution of stop and limit orders. Typically, triggered orders remain pending at the time of their creation because the conditions for their execution are not satisfied at the time they are created. It does not mean, however, that a triggered order cannot be executed immediately when it is created and sent. If the trigger, or conditions set in the order are immediately satisfied by the market at the time the order is created, then the order is sent for execution immediately. Triggered orders may or may not embed relaxing conditions about the execution price relative to the trigger. And such relaxing conditions, when they exist, may or may not be under the control of the trader, as the reader will see in the description of each order type.

Once triggered, any triggered order will either be executed or rejected, in full or in part. However, rejected triggered orders are not canceled by the event of rejection; they are resubmitted if there is any probability of execution, immediately or later, depending on the conditions set in the order. Depending on the type of triggered order, the trigger status and order identification will change also after a rejected attempt of execution.

Unless the validation for orders is enabled, and the mode one-click is disabled, there is no warning in the case a triggered order is sent with conditions immediately satisfied by the current market, in other words, if an order is triggered immediately upon creation. Traders making an extensive use of the one-click mode should carefully review their triggered orders before sending them to determine if the conditions are consistent with their intentions, and if such order is likely to sent for execution immediately when created.

The stop entry order aims to enter the market should a predefined level be reached by the market price. It is usually used to attempt entering the market in the direction of the immediate trend.

The stop entry orders are good till canceled orders. They remain pending as long as they are not executed, nor canceled, either by the trader, or for reasons due to margin maintenance requirements.

The stop entry order is an order to open and can be used to take, flatten, reduce or increase an exposure.

The execution price may be constrained or not. The constraint for execution is defined with the slippage control, is relative to the trigger price and establishes a limit to the order. Entry Stop order with applied slippage is defined as STOP LIMIT order.

Stop entry orders with applied slippage control become limit orders once they have been triggered, and have suffered rejection eventually. The full order, or the amount that failed to execute upon triggering, will remain pending as a good-till-canceled limit order at the price defined as initial stop price corrected with slippage value applied in initial Stop order. The order will be executed should the market reaches the limit level later. In case the trader does not want to keep the limit order, he must cancel it manually. Once the stop entry order is converted to a stop limit order, the processing and execution process of the stop limit orders apply.

Facility Trailing & OCO

The trigger of the stop entry order may be trailed. The trigger price is adjusted once the market price moved from a value equal to the trailing step defined by the trader in a direction coherent with the order side. The price from which the trailing step is tracked is the market price at the time the option for trailing enablement is submitted, and is referred as the base price. The base price is dispatched in the messages log upon submission. The trailing option can only be enabled and defined by edition of an existing order.

Order creation

The stop entry buy order #37682365 is created Stop Entry 1

2010-06-29 19:05:23 Order ACCEPTED: #37682365 ENTRY BUY 15 mil. GBP/USD @ LIMIT 1.5204 IF BID => 1.52 - Position #8892478 
2010-06-29 19:05:22 Order sent: ENTRY BUY 15 mil. GBP/USD @ LIMIT 1.5204 IF BID => 1.52 
2010-06-29 19:05:22 Sending order: ENTRY BUY 15 mil. GBP/USD @ LIMIT 1.5204 IF BID => 1.52 

Order edition

The stop entry buy order #37682365 is selected and the right-click menu option Edit order is called:

Stop Entry 2

The type of the order is STOP(LIMIT) because it is a stop entry order, and limit because there is a slippage constraint enabled.

Edit Entry Order pop-up window before trailing enablement

Stop Entry 3

Edit Entry Order pop-up window after trailing enablement

Stop Entry 4

After submission of the trailing feature, the messages log dispatches the trailing stop Step change with the base price:

19:07:04 Position 8892478 ENTRY #37682365 trailing stop Step changed from 0 to 0.0050 Base Price 1.50855 USD 
19:05:23 Order ACCEPTED: #37682365 ENTRY BUY 15 mil. GBP/USD @ LIMIT 1.5204 IF BID => 1.52 - Position #8892478 
19:05:22 Order sent: ENTRY BUY 15 mil. GBP/USD @ LIMIT 1.5204 IF BID => 1.52 
19:05:22 Sending order: ENTRY BUY 15 mil. GBP/USD @ LIMIT 1.5204 IF BID => 1.52 

The order #37682365 is now a Trailing Stop entry order

Stop Entry 5

The type of the order has changed and is now Trail STOP.

The value of the trailing step is shown after the trigger and limit conditions in the Price column of the orders pane.

The action of adding and editing a trailing feature to a stop entry order does not issue another order in lieu of the original one. As a result, the order & position identification numbers remain the same.

The base price necessary for the tracking of the market price relative to the trailing step is the market price at the time the trailing feature enablement is submitted. In case the Edit Entry pop-up window remains open, the market price when the edition is finally submitted can be significantly different from the market price at the time the option was selected. The traders must therefore watch the base price associated with any trailing order for correctly assessing the market level at which the trailing step is supposed to be adjusted.
The trader has the possibility to change the type of the stop order, the trigger price, or both, at the same time of adding the trailing feature.

Parameters

The amount of the order to execute, 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 the pending status.

Side: Buy or sell order defined by the trader.

Entry: The market side reference and the trigger price.

The market reference is either: Bid >=, Bid <=, Ask >=, Ask <= It represents the market variable that will be checked for triggering.

Slippage: The allowed deviation for execution, relative to the trigger price, defined by the trader.

  • If disabled the triggered order is a market order.
  • If enabled, the triggered order is a limit order, whose limit is defined as the amount of allowed slippage relative to the trigger price.

Parameters Trailing

Trailing Step: The amount of the trailing step defined in pips. The step cannot be less than 10 pips.

Messaging

The action of sending a stop entry order and according consequences are recorded in the messages log, activity log, trade log and other reporting sections if appropriate.

Processing

Stop entry orders are set and launched from the conditional order facility of any full trading pane.

Stop Entry Buy when BID >=

The stop entry buy order launches a buy order when the market bid price is equal or above the trigger price. It remains pending otherwise and good till canceled.

If the slippage control is disabled, the buy order is sent at the market when triggered

If the slippage control is enabled, the buy order is sent limited when triggered.

Stop entry buy order if bid >= (at market)

Stop Entry 6

Stop entry buy order if bid >= (limited at trigger)

Stop Entry 7

09:06:23 Order ACCEPTED: #37885325 ENTRY BUY 10 mil. USD/CHF @ MKT IF BID => 1.0697 - Position #8952387 
09:06:23 Order sent: ENTRY BUY 10 mil. USD/CHF @ MKT IF BID => 1.0697 
09:06:23 Sending order: ENTRY BUY 10 mil. USD/CHF @ MKT IF BID => 1.0697 

Stop Entry 8

09:07:12 Order ACCEPTED: #37885377 ENTRY BUY 10 mil. USD/CHF @ LIMIT 1.0695 IF BID => 1.0695 - Position #8952396 
09:07:12 Order sent: ENTRY BUY 10 mil. USD/CHF @ LIMIT 1.0695 IF BID => 1.0695 
09:07:12 Sending order: ENTRY BUY 10 mil. USD/CHF @ LIMIT 1.0695 IF BID => 1.0695 

Stop Entry 9

In one-click mode, if the order is sent and the trigger price is equal or below the current market bid price, the order will be immediately sent for execution.

Stop Entry Buy when ASK >=

The stop entry buy order launches a buy order when the market ask price is equal or above the trigger price. It remains pending otherwise and good till canceled.

  • If the slippage control is disabled, the buy order is sent at the market when triggered.
  • If the slippage control is enabled, the buy order is sent limited when triggered.

Stop entry buy order if ask>= (at market)

Stop Entry 10

Stop entry buy order if ask>= (limited)

Stop Entry 11

09:07:55 Order ACCEPTED: #37885410 ENTRY BUY 120 mil. EUR/JPY @ MKT IF ASK => 109.975 - Position #8952403 
09:07:55 Order sent: ENTRY BUY 120 mil. EUR/JPY @ MKT IF ASK => 109.975 
09:07:55 Sending order: ENTRY BUY 120 mil. EUR/JPY @ MKT IF ASK => 109.975 

Stop Entry 12

09:08:29 Order ACCEPTED: #37885441 ENTRY BUY 120 mil. EUR/JPY @ LIMIT 110.105 IF ASK => 109.985 - Position #8952406 
09:08:29 Order sent: ENTRY BUY 120 mil. EUR/JPY @ LIMIT 110.105 IF ASK => 109.985 
09:08:29 Sending order: ENTRY BUY 120 mil. EUR/JPY @ LIMIT 110.105 IF ASK => 109.985 

Stop Entry 13

In one-click mode, if the order is sent and the trigger price is equal or below the current market ask price, the order will be immediately sent for execution.

Stop Entry Sell when BID <=

The stop entry sell order launches a sell order when the market bid price is equal or below the trigger price. It remains pending otherwise and good till canceled.

  • If the slippage control is disabled, the sell order is sent at the market when triggered.
  • If the slippage control is enabled, the sell order is sent limited when triggered.

Stop entry sell order if bid <= (at market

Stop Entry 14

Stop entry sell order if bid <= (limited)

Stop Entry 15

09:10:12 Order ACCEPTED: #37885532 ENTRY SELL 5 mil. GBP/NZD @ MKT IF BID <= 2.192 - Position #8952417 
09:10:12 Order sent: ENTRY SELL 5 mil. GBP/NZD @ MKT IF BID <= 2.192 
09:10:12 Sending order: ENTRY SELL 5 mil. GBP/NZD @ MKT IF BID <= 2.192 

Stop Entry 16

09:12:08 Order ACCEPTED: #37885645 ENTRY SELL 5 mil. GBP/NZD @ LIMIT 1.99915 IF BID <= 2 - Position #8952439 
09:12:08 Order sent: ENTRY SELL 5 mil. GBP/NZD @ LIMIT 1.99915 IF BID <= 2 
09:12:08 Sending order: ENTRY SELL 5 mil. GBP/NZD @ LIMIT 1.99915 IF BID <= 2 

Stop Entry 17

In one-click mode, if the order is sent and the trigger price is equal or above the current market bid price, the order will be immediately sent for execution

Stop Entry Sell when ASK <=

The stop entry sell order launches a sell order when the market ask price is equal or below the trigger price. It remains pending otherwise and good till canceled.

  • If the slippage control is disabled, the sell order is sent at the market when triggered.
  • If the slippage control is enabled, the sell order is sent limited when triggered.

Stop entry sell order if ask<= (at market)

Stop Entry 18

Stop entry sell order if ask<= (limited at trigger)

Stop Entry 19

09:12:41 Order ACCEPTED: #37885711 ENTRY SELL 5.5 mil. USD/CAD @ MKT IF ASK <= 1.0586 - Position #8952452 
09:12:41 Order sent: ENTRY SELL 5.5 mil. USD/CAD @ MKT IF ASK <= 1.0586 
09:12:41 Sending order: ENTRY SELL 5.5 mil. USD/CAD @ MKT IF ASK <= 1.0586 

Stop Entry 20

09:13:28 Order ACCEPTED: #37885759 ENTRY SELL 5.5 mil. USD/CAD @ LIMIT 1.0252 IF ASK <= 1.0252 - Position #8952457 
09:13:28 Order sent: ENTRY SELL 5.5 mil. USD/CAD @ LIMIT 1.0252 IF ASK <= 1.0252 
09:13:28 Sending order: ENTRY SELL 5.5 mil. USD/CAD @ LIMIT 1.0252 IF ASK <= 1.0252 

Stop Entry 21

In one-click mode, if the order is sent and the trigger price is equal or above the current market ask price, the order will be immediately sent for execution.

Execution Process

Once the stop entry order is created, and assuming that the conditions for triggering are not yet satisfied; the order remains in a pending status. Moreover, once such an order is accepted on the server, the triggering and processing of the order does not depend anymore on the status of the client application. As soon as the market reaches the trigger by the market reference criterion, the order is sent for execution as a market or limit order.

The trigger price is not the execution price. Unless the slippage control is enabled and the slippage value is set to zero, it is highly likely that the execution price differs from the trigger price. When the trigger price is reached, it triggers the sending of the order to the marketplace, at which time the market price could have moved from the trigger price, the execution price depends then on the conditions set for execution. If the slippage control is enabled and its value set to zero, the stop entry order is effectively limited, and its limit is the trigger price. Moreover, if stop entry orders are triggered during a volatile market phase, it is very likely that the liquidity may no longer be available at the trigger price.

Margin Requirements

The margin requirements for stop entry orders are calculated when the orders are sent for execution only. Margin is not reserved as long as stop entry orders remain pending. Should the margin be not enough to cover the full execution of the market order, the part of the order not covered by the margin will be rejected and only the amount covered by the margin will be sent for execution.

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