1. Market price list
Market Order (Market Order) is an order filled at the current market price, without the need to set their own price, which can make the order quickly filled.
Advantage: Market order can help customers quickly trade, to prevent short-selling or stop-loss / take-profit as soon as possible.
Instructions and Notes.
Market orders do not guarantee the transaction price, especially when the market is rapidly changing, or for trading inactive varieties of contracts, market order transactions will often be executed at a higher or lower price.
2, limit orders
Limit order (Limit Order) need to specify the transaction price, only to reach the specified price or a better price will be executed, and stock trading "ordinary order" is similar.
Advantage: You can lock the transaction price range, the transaction price is not necessarily the limit price specified by the customer, but may be "better", that is, to buy at a lower price, or to sell at a higher price.
Description and notes.
If the limit price is not met or exceeded, the order will not be executed.
When the price direction is determined, it will initiate a move at a fairly rapid pace, but the volume and timing of the transaction is uncertain, at which point the market may be missed if limit orders are used.
Some of the unfilled limit orders can be cancelled and changed, when the original order is still in effect during the process of change or cancellation, there may be modified in the process of the original order to complete all of the orders can not be cancelled and changed.
3. Stop-loss orders
Once the price reaches the set stop price, the order will be completed in the form of a market order. The difference between a stop-loss order and a limit order is to sell low and buy high.
A sell stop order is a type of order that will be placed to close a position at the market price after the stop price is reached.
A Buy Stop Order is a type of order that will be placed to close a position at the market price when the stop price is reached, and the Buy Stop Order price needs to be higher than the current market price, otherwise it will be filled immediately at the market price.
Advantage: A way of placing orders to help customers' futures positions protect profits and limit losses.
Description and Notes.
There is no guarantee that the order will be 100% successful, nor is there any guarantee that the transaction will be successful. Insufficient purchasing power or insufficient position will cause the triggered order to fail. Triggered does not mean that the order has been filled, stop-loss orders only after the system detects the trigger price and automatically help investors submit market orders; triggered orders and ordinary orders, if there has been no set up, the day after the close of trading will be automatically revoked.
Once a stop-loss order is triggered and a real order is generated, the real order and stop-loss order will not have any actual connection, and deleting the stop-loss order will not have any effect on the real order. Please note that some exchanges do not support stop-loss orders.
Other issues related to stop-loss orders.
Q: Can a stop-loss order be used to achieve a take profit? For example, if you buy at $5,000 and want to sell a take profit at the market price when the price reaches $6,000, can you place a sell stop loss order at $6,000?
A: No. A stop loss order cannot achieve a take profit. The operation of the above scenario will result in a pending order as long as the current price is below $6,000.
Q: So, how do I operate on a futures that I bought at $5,000 and want to sell for a take profit at $6,000?
A: Currently Tiger Securities does not support the order type of stop limit order. Normally, you can place a sell limit order for $6,000. (to be filled at the limit price)
Q: Can I hang a stop-loss order without holding a position? What's the effect?
A: Yes. Usually stop-loss orders are hung in case there is a corresponding position to achieve the purpose of stop-loss.
If there is no corresponding position, it is also possible to hang a stop-loss order, the effect is that a separate stop-loss order can play a breakout trailing effect to some extent.
For example, the current price of Contract A is $3,500, and I expect that if Contract A falls below $3,000, the price will continue to move downward. Then I put up a sell stop order with a stop loss price of $3,000 with no position in the A contract: this means that when the price of the A contract reaches $3,000 and below, the system will place a market order to sell.
It should be noted that if the current price of Contract A is $2800 (lower than the current price), the operation in the above case will result in an immediate transaction in the form of a pending market order.
4. Stop Loss Limit Order
A Stop Limit Order requires the customer to enter a specified Stop price and a specified Limit Price, which will be placed as a Limit Order once the market price reaches the set Stop Price. The difference between a Stop Order and a Limit Order is that the order is triggered when the market price reaches the Stop Price.
Advantage: A stop-loss limit order is placed as a limit order to avoid the problem of large deviations from the executed price.
Difference between stop-loss order and stop-limit order.
A stop loss order is placed as a market order to ensure that the order can be filled as quickly as possible, but is not guaranteed at the price at which it will be filled. Stop-loss limit orders will be listed in the form of a limit order to ensure that the transaction price is equal to or better than the limit price set by the customer, but does not guarantee that the transaction will be completed.
Instructions and Notes.
If it is a stop-loss order, it is certain to be filled, although it may be sold very low.
For stop-limit orders, when the price quickly falls below the limit price, the order is useless and the loss will continue to expand. Also note that some exchanges do not support stop-limit orders.
When buying, the limit price must be greater than the stop price and the stop price must be higher than the current latest price.
When selling, the limit price should be less than the stop price and the stop price should be lower than the current price.
For example, you are buying 1 long X contract at $1000 and you want to limit your maximum loss to $100, so you create a stop loss at $910 and a limit at $900. If the price of the X contract falls to $910, your 1 long X contract will be triggered with a sell limit order at $900. Translated with www.DeepL.com/Translator (free version)