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Экзамен по деловой переписке2.docx
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Types of Orders

Client terminal allows to prepare requests and request the broker for execution of trading operations. Moreover, terminal allows to control and manage open positions. For these purposes, several types of trading orders are used. Order is a client's instruction to brokerage company to perform a trade operation. In the terminal, orders are divided into two main types: market and pending. Besides them "Stop Loss" and "Take Profit" are available.

Market Order

Market order is an instruction given to a brokerage company to buy or sell a security. Execution of this order results in the execution of a deal. The price of a deal depends on the execution mode, which depends on the symbol type. Generally, a security is bought at the Ask price and sold at the Bid price.

Pending Order

Pending order is the client's instruction to a brokerage company to buy or sell a security at pre-defined conditions in the future. The following types of pending orders are available:

  • Buy Limit — trade request to buy at the Ask price that is equal to or lower than that specified in the order. The current price level is higher than the value in the order. Usually this order is placed in anticipation of that the security price, having fallen to a certain level, will increase;

  • Buy Stop — trade request to buy at the Ask price that is equal to or higher than that specified in the order. The current price level is lower than the value in the order. Usually this order is placed in anticipation of that the security price, having reached a certain level, will keep on increasing;

  • Sell Limit — trade request to sell at the Bid price that is equal to or higher than that specified in the order. The current price level is lower than the value in the order. Usually this order is placed in anticipation of that the security price, having increased to a certain level, will fall;

  • Sell Stop — trade request to sell at the Bid price that is equal to or lower than that specified in the order. The current price level is higher than the value in the order. Usually this order is placed in anticipation of that the security price, having reached a certain level, will keep on falling;

  • Buy Stop Limit — this type is the combination of the two first types being a stop order for placing Buy Limit. As soon as the future Ask price reaches the stop-level indicated in the order (the Price field), a Buy Limit order will be placed at the level, specified in Stop Limit price field. The stop-level is set above the current Ask price, and the Stop Limit price is set below the stop-level.

  • Sell Stop Limit — this type is a stop order for placing Sell Limit. As soon as the future Bid price reaches the stop-level indicated in the order (the Price field), a Sell Limit order will be placed at the level, specified in Stop Limit price field. The stop-level is set below the current Bid price, and the Stop Limit price is set above the stop-level.

Take Profit

Take Profit order is intended for gaining the profit when the security price has reached a certain level. Execution of this order results in complete closing of the whole position. It is always connected to an open position or a pending order. The order can be requested only together with a market or a pending order. Terminal checks long positions with Bid price for meeting of this order provisions (the order is always set above the current Bid price), and it does with Ask price for short positions (the order is always set below the current Ask price).