This section details the various order types available to you
and how they can assist your trading.
Limit orders
Limit Orders are orders which are placed at a better price to
you than the prevailing price. For example, an order to buy at a
price below the current price or sell at a price above the current
price. Unless attached to an open position, they will be active
unless executed or removed.
Stop orders
These are orders which are placed at a worse price than the
prevailing price. For example, an order to buy at a higher price
than the current price or sell at a lower price than the current
price. Stop orders are often used to limit possible losses (known
as Stop Loss orders which are attached to an open position, see
below) but can be used to open new positions at market points which
may see a reversal of recent trends. Unless attached to an open
position, they will be active unless executed or removed.
Stop Loss orders
These are Stop orders which are attached to open positions. If
the order is executed, it will close all or part of the open
position (crystallise a loss). If the open position is closed, the
Stop Loss order is automatically cancelled.
Linked Limit order
These are Limit orders specifically attached to open
positions. If the order is executed it will close all or part of
the open position (crystallise a profit). If the open position is
closed, the attached Limit order is automatically
cancelled.
One Cancels the Other
OCO orders (One Cancels the Other) allow you to link a Stop
Loss order and a Limit order to an open position. This is
generally used to control possible losses with the Stop Loss order
and take possible profits with the Limit order. If one of the
orders is executed, the open position is closed and the
remaining order is automatically cancelled. OCO orders can also be
used to link two opening orders.
Guaranteed Stop Loss orders
These are Stop Loss orders where the agreed level will be the
price at which the order is executed regardless of any gapping in
the market or TD Waterhouse CFDs trading hours (please see
important information regarding orders following). An additional
spread or charge (Limited Risk Premium) is charged (on opening the
trade) in connection with a Guaranteed Stop Loss order.
Important information regarding orders
Orders are monitored and executed on the basis of the TD
Waterhouse CFDs quote (known as “our quote”), e.g. a Stop Loss sell
order would be triggered for execution when our bid price
meets the trigger price. We will then execute at the next price
available in the underlying instrument.
For the above reason, the execution price of an order may be
different to the specified trigger level. This is known as
“gapping” in the professional markets and is a risk which falls on
the customer. Generally, this does not occur or the price
difference is small, however there are circumstances when the
execution price may be quite different to the specified level as
follows;
(i) If the underlying instrument is experiencing a period of
very poor liquidity or high volatility. This can occur particularly
around the release of key market statistics or company
announcements.
(ii)Orders are only monitored and executed during TD
Waterhouse CFDs market trading hours (not necessarily
underlying market trading hours). In the case of markets which
continue to operate outside of TD Waterhouse CFDs hours we
will execute any triggered orders at the first available price in
our opening hours which may be substantially different to the order
level. However, if the market has moved beyond the trigger level
and returned by the time that TD Waterhouse CFDs reopens, the order
will not be executed.
Orders that are left on the basis of ‘Our Quote’ on markets
which TD Waterhouse CFDs quote as Grey Markets (i.e. those we quote
outside of the hours of the underlying market) will be executed if
the out-of-hours price reaches your order trigger level. The TD
Waterhouse CFDs price for such Grey Markets is determined by
TD Waterhouse CFDs in the light of prevailing, related markets
(e.g. the US markets may determine the Grey Market FTSE
price).
Orders which are left to open a position are subject to normal
credit procedures. If an order to open were to result in additional
margin being required the trade may not be opened at the absolute
discretion of TD Waterhouse CFDs. Equally Stop Loss orders may not
be moved, at the absolute discretion of TD Waterhouse CFDs, if it
were to result in a margin call.