Order Types
There are more than 60 different order types available to you as a trader. Below, we explain some commonly used order types.
Market order (MKT)
With a market order you trade directly at the then current market price. This will be done at the then current bid (sell) or ask (buy) price.
If the bid (ask) volume is lower than the number of securities in your sell (buy) order, the remainder of your order will be executed at a lower (higher) price.
This order type will guarantee you an execution of your specified amount, at the current prices.
Limit order (LMT)
Through a limit order you indicate the maximum price at which you wish to buy or the minimum price at which you wish to sell. Once this price is reached, the order is executed. In this case you never pay more (and with a sell order you never receive less) than the limit price you specified.
This order type will guarantee the specified price, but if there’s not enough volume at this price, you are not guaranteed (full) execution.
Stop order (STP)
A stoploss order allows you to specify the point at which you want to take your losses. This eliminates the need to continuously monitor all prices. When the price drops (rises) through the stop price you specify, your sell (buy) order is automatically executed at the then current market price. It does not guarantee a specific execution price and may execute significantly away from its stop price.
This order type will guarantee you an execution of your specified amount, at market price.
Stop Limit order (STP LMT)
A stop limit order allows you to specify the point at which you want to take your losses. This eliminates the need to continuously monitor all prices. When the price drops (rises) through the stop price you specify, your sell order (buy order) is automatically submitted at the limit price you specified.
The operation of the stop limit order is the same as that of a stoploss order, with the difference being that when the stop price you specify is reached, a limit order is placed instead of a market order.
This order type will guarantee the specified price, but if there’s not enough volume at this price, you are not guaranteed (full) execution.
Trail Stop order (Trail / Trail %)
A trailing stop order is an order where the stop price is a fixed predetermined amount or percentage below the current price (for a “long” position).
If the price rises, the stop-loss order rises along with the fixed amount / percentage. However, if the price falls, the stop loss order does not fall with it. This order option limits the maximum loss, while the possible profit is “unlimited.” For a “short” position, a trailing stop loss buy order can be placed.
With a trailing stop order, you only need to enter the Trailing amount or percentage. The system will calculate constantly the corresponding stop price. The moment the stop price is triggered, a market order is sent to close your position at the current price.
This order type will guarantee you an execution of your specified amount, at the current prices when the Trail Stop amount is hit.
Trailing Limit Order (TAIL LMT)
A Trailing Limit Order combines the features of a Trailing Stop Order and a Limit Order. It trails the market price but only triggers a limit order once the stop price is reached. This order type helps manage risk while seeking to optimize the execution price.
Market If Touched Order (MIT)
A Market If Touched Order is triggered and becomes a Market Order when the market price touches or goes beyond the specified price. It allows you to enter or exit positions at a specific price level.
Limit If Touched Order (LIT)
A Limit If Touched Order is triggered and becomes a Limit Order when the market price touches or goes beyond the specified price. It offers more control over execution price but may not guarantee immediate execution if the limit price is not met.
Choosing an order type
Order types availability vary depending on which platform you use.
Below you will find what order types you can select in each platform:
In LYNX+ you can use the following order types: MKT, LMT, STP, STP LMT and TRAIL/TRAIL %.
You can change the order type by clicking on the current order type when placing a new order. A drop-down menu will open and here you can select your desired order type.
It is also possible to add a bracket order by selecting “+ Add target or stoploss” and specifying at what prices you want these orders to trigger.
In TWS you can choose between a huge amount of different order types including all of the aforementioned ones. They also offer the possibility for using algorithmic orders.
You can change the order type by clicking on the current selection when placing a new order. A drop-down menu will open and here you can select your desired order type.
You can also select the Order Type using an Order Ticket in the TWS platform. You will find this option under Order Description.
In the LYNX Trading App it is possible to trade with all of the mentioned order types above and more.
Outside of these possibilities, you can also use specific algorithmic orders.
You can change the order type by clicking on the current order type when placing a new order. A drop-down menu will open and here you can select your desired order type.
FAQ
Yes, you can change or cancel an order as long as it has not been executed. It is also to change the order type if the order hasn’t been executed yet.
The choice of order type depends on your trading strategy, market conditions, and risk management preferences. Understanding the different characteristics will help you select the most suitable one for your specific needs.
Depending on the product you are trading, there is a default trigger method that will activate the order.
You can find more information about these trigger methods here.