This section details the various order types
available.
Orders can be placed online and by telephone and it is
possible to leave orders to be executed once your price condition
has been met. It is important to understand exactly what conditions
affect the execution of orders (see “Important information
regarding orders” and/or contact the Customer Services Team).
Orders broadly fall into two categories; Limit orders and Stop
orders.
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 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 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
As the name suggests, 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 Linked Limit order is automatically
cancelled.
One Cancels the Other order
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 (see
“Important information regarding orders”) in the market or TD
Waterhouse Financial Spread Betting trading hours. An additional
spread or charge (Limited Risk Premium) is charged (on opening the
bet) in connection with a Guaranteed Stop Loss order.
Important information regarding orders
Orders are monitored and executed on the basis of the TD
Waterhouse Financial Spread Betting quote (known as “our quote”),
e.g. a Stop 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 reasons as outlined, 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 Financial Spread Betting
market trading hours (not necessarily underlying market
trading hours). In the case of markets which continue to operate
outside of TD Waterhouse Financial Spread Betting 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 Financial Spread
Betting re-opens, the order will not be executed.
Orders that are left on the basis of “Our Quote” on markets
which TD Waterhouse Financial Spread Betting 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 Financial Spread Betting price for
such Grey Markets is determined by TD Waterhouse Financial Spread
Betting 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 Financial Spread Betting. Equally Stop
Loss orders may not be moved, at the absolute discretion of TD
Waterhouse Financial Spread Betting, if it were to result in a
margin call.
Obviously this section does not detail every aspect of
Financial Spread Betting with TD Waterhouse Financial Spread
Betting. For full information, please refer to our Market
Information Sheets and Terms of Service.