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Stop Loss and Limit Profit orders
TradingDesk Pro 5 system allows to place so called "one chancels the other" Stop Loss and Limit Profit orders.
User sets one or two order's prices: one for Stop Loss order and the other for Limit Profit Order.
| · | Stop Loss Order. A Stop Loss order is always linked to a specific trade or a whole position on this currency and side (buy or sell). This order is usually placed by trader to prevent additional loss on the position (trade). Stop Loss order is executed (triggered) by dealer at the moment the market price touches or penetrates the client's specified stop rate. The executions of these orders are under the supervision of the dealer. All Stop Loss Orders are held by system's server for monitoring until the order price is hit or "passed". In the case of a Stop Loss order linked to a Buy position (trade), this would mean that the last 3 bid prices are equal to or less than the order price. In the case of a Stop Loss Order linked to a Sell position (trade), this would mean that the last 3 ask prices are equal to or greater than the order price. Order remains in effect until the client cancels the existing order. If the price never goes to client's specified level, then the order will remain unexecuted, but it will still be a live order until trader cancel it or position will be closed by another type of order. When Stop Loss order is executed, closing the position, the Limit Profit Order is automatically cancelled and erased. Note that "3 pips" rule acts for real accounts only. These rules for demo and contest accounts can differ. |
There are some options for Stop Loss orders in TradingDesk Pro 5 system that traders can set:
| - | Expiration. Trader can set an expiration date and time for Stop Loss order. In this case Stop Loss order will be erased from the TradingDesk Pro 5 system when «expiration date and time» comes. |
| · | Limit Profit. A Limit Profit is always linked to a specific trade or a whole position on this currency and side (buy or sell). This order is usually placed by trader to take profit on the position (trade). This type of order is executed (triggered) at the moment the market price touches or penetrates the client's specified rate. The executions of these orders are under the supervision of the dealer. All Limit Profit Orders are held by system's server for monitoring until the order price is hit or "passed". In the case of a Limit Profit Order linked to a Buy position (trade), this would mean that the last 3 bid prices are equal to or greater than the order price. In the case of a Limit Profit Order linked to a Sell position (trade), this would mean that the last 3 ask prices are equal to or less than the order price. Limit Profit order remains in effect until the client cancels the existing order. If the price never goes to client's specified level, then the order will remain unexecuted, but it will still be a live order until trader cancel it, or position will be closed by another type of order. When Limit Profit order is executed, closing the position, the Stop Loss order is automatically cancelled and erased. |
Options for Limit Profit orders in TradingDesk Pro 5 system are equal to above-mentioned Stop Loss orders options except trailing.
Stop Loss and Limit Profit orders for specific trade can be set either during placing order (Market, GTC) to which they are linked from New orders window or from Opened Trades table for already opened trade.
Stop Loss and Limit Profit orders for whole open position on this currency and side can be set from Position Review table.
Usually Limit Profit orders for already opened Buy positions and Stop Loss orders for already opened Sell positions are entered in above the current market price. Limit Profit orders for already opened Sell positions and Stop Loss orders for already opened Buy positions are entered in below the current market price. But TradingDesk Pro 5 system never checks the fulfillment of this rule.
Stop Loss and Take Profit orders for a previously opened positions can be entered at any moment (during the working days) except mentioned below «locking rule» case. Please note that TradingDesk Pro 5 system prevents from placing, changing parameters or canceling of these orders inside the 10 pips range between order and current market price because these orders can be at already under the supervision of the dealer. This range called «locking rule» can be downwarded.
Please note that due to possible price gaps over the weekend, or shock market news slippage on Stop Loss, Limit Profit and GTC orders is possible. In these circumstances order can be executed not at the trader's specified price because it is extremely difficult to get such prices from our counterparties. Under normal market conditions we do our best to provide execution of order at the trader's specified price. It is the in-house policy of High Street Networking.
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