Types of orders on STP

Types of orders on STP

On STP accounts there can be opened the following types of orders:

Pending orders, Stop Losses and Take Profits can be placed just a few pips away from the market price and even within the spread.

The Order is placed in the queue in order to be executed in the following cases:

  • a) The Take Profit on open Long Position is placed in the queue in order to be executed if the Bid price in the Quotes Flow becomes equal or higher than the Order Level;
  • b) The Stop Loss on open Long Position is placed in the queue in order to be executed if the Bid price in the Quotes Flow becomes equal or lower than the Order Level;
  • c) The Take Profit on open Short Position is placed in the queue in order to be executed if the Ask price in the Quotes Flow becomes equal or lower than the Order Level;
  • d) The Stop Loss on open Short Position is placed in the queue in order to be executed if the Ask price in the Quotes Flow becomes equal or higher than the Order Level;
  • e) The Buy Limit is placed in the queue in order to be executed if the Ask price in the Quotes Flow becomes equal or lower than the Order Level;
  • f) The Sell Limit is placed in the queue in order to be executed if the Bid price in the Quotes Flow becomes equal or higher than the Order Level;
  • g) The Buy Stop is placed in the queue in order to be executed if the Ask price in the Quotes Flow becomes equal or higher than the Order Level;
  • h) The Sell Stop is placed in the queue in order to be executed if the Bid price in the Quotes Flow becomes equal or lower than the Order Level.

Once the Pending Order is placed in the queue in order to be executed i.e. activated, the Server automatically checks if the Free Margin is sufficient to open the position.

Free Margin is calculated as follows: Free Margin = Balance + Floating – Initial Margin.

If the above mentioned calculations for the new position have been done and:

  • a) "Free Margin" (after the order has been executed) is more or equals to zero, the position is opened.
  • b) "Free Margin" (after the order has been executed) is less than zero the Company has the right to make a credit to trading account (Credit In) and just after Pending Order will be executed to withdraw all amount of credit (Credit Out).
  • c) The process of opening the position is followed by the relevant record in the Server Log File and the position opened by this Order has the same Ticker as the Pending Order.

Buy LimitSell Limit and Take Profit are executed at the order level or better. A Buy limit order can only be executed at the limit price or lower, and a Sell limit order can only be executed at the limit price or higher, and a Take Profit order can only be executed at the order price or better (for long position at the order price or higher, and for short position at the order price or lower). 

During periods of high volatility or low liquidity Limit Orders and Take Profit Orders could be partially executed - meaning that positions would open all size available as it becomes available resulting in multiple positions versus one whole position.

Buy StopSell Stop and Stop Loss are executed at the level at the current market price similar with Market Order execution. The price when Sell Stop or Buy Stop Order or stop Loss Order is executed may not always be the price was set up.

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