Order Type & Placement Guide

If you are new to trading we suggest you place orders in PLAIN ENGLISH without using jargon or industry terminology otherwise the dealer may assume that you are a professional trader and execute your orders according to exactly what you say. Correct order placement comes with experience.

Listed below are common types of orders used along with the characteristics distinguishing each. At CKL, our Authorised Representatives can advise on the use and placement of these orders. Please contact us if you have any questions.

Order: An instruction to Buy/Sell received from the client containing the details;
Client Account #
Currency Cross
Quantity
Price
Type of Order
Long (Buy): Net bought position to profit from a rising market.
Short (Sell): Net sold position to profit from a falling market.

Sessions: All orders are assumed good for one trading session –day only (e.g. day session, night session) unless otherwise specified. That is, they lapse if not filled by the end of the trading session.

Market Order: This order is to be executed immediately. Implies that price is a secondary consideration

Limit Order: This order identifies the maximum and minimum price that the client is prepared to buy or sell at. Limit orders are quite often used for setting profit targets or new order entry settings. Be aware that if you have placed a profit target as a Limit order, it will have to be cancelled if you exit a trade through a separate order.

Stop Order (or Stop Loss Order): As soon as the market trades at or above the specified price for Buy orders or at or below the specified price for Sell orders, the order becomes a market order to be executed immediately. In volatile markets slippage may occur resulting in the actual fill price being different from the specified price.

These orders can be used in risk management strategies to get out of the market if your trade is moving against you. Be aware that if you have placed a Stop Loss order it will have to be cancelled if you exit a trade through a separate order. Stop orders are also used for setting entry levels into a trade, for example going short the market if it falls to a certain price or long the market if it reaches a preset price.

OCO (One Cancels the Other): If you have simultaneous orders such as a Stop-Loss order and a Limit order, when placing the order ensure if one is exercised it cancels the other.

CONDITIONAL (IF DONE): If you place an order to be executed at a set price and you also want to run another order when filled you must ensure that you add a condition. Otherwise the second order might be executed without the initial order being filled.

GTC (Good Till Cancelled): Order does not lapse at the end of the session, it remains on the broker's books until filled or cancelled by the client.