Stop orders on exchange traded options

Facts about the stop orders on ETOs that we offer at the moment

• Stop order types: Stop and Stop-limit
• Asset classes: Stock and Stock Index Options
• Exchanges: OPRA (US) and Euronext markets (Amsterdam, Paris, Brussels, Milan)

Single leg (outright)

The stop order will trigger if one of 3 conditions is met:

• A Stop order to buy (or sell) will be triggered if two consecutive quoted offer (or bid) prices are greater (or less) than or equal to the specified price level.
• A Stop order to buy (or sell) will be triggered if the quoted offer (or bid) price is greater (or less) than or equal to the specified price level and the offer (or bid) size increases.
• A Stop order to buy (or sell) will be triggered if the quoted bid (or offer) price is greater (or less) than or equal to the specified price level.

The trigger mechanism is designed to prevent triggering a stop based on a sudden widening of the price, but will also not prevent triggering the order if prices reflect market conditions.

Strategy (multileg)

The conditions for triggering a stop order on a multilegged option order are different compared to a stop order on a single legged option. Bid and Offer prices synthetic multileg prices calculated from quotes on each individual leg on the exchange.

A stop order on a multileg will trigger if one of the 2 conditions below is met:

• A multileg stop to buy (sell) is triggered if quoted offer (bid) prices are greater (less) than or equal to the specified price level for a few consecutive seconds, and the time difference between the last quote on the individual legs are within several seconds.
• A multileg stop to buy (sell) is triggered if quoted bid (offer) prices are greater (less) than or equal to the specified price level for less than a second, and the time difference between the last quote on the individual legs are within several seconds.

The trigger mechanism is designed to prevent triggering a stop based on a sudden widening of the price on one or more of the individual legs, and on individual leg prices that have not recently been updated.

Please note that Stop Limit orders and OCO orders are not currently available.

When opening a trade ticket on an ETO, click on the order type to select Stop or Stop Limit.