How do I use Conditional Orders?

Introduction to Conditional Orders

Conditional Orders are orders used for various trading strategies and are available across a wide range of instruments.

With Conditional Orders, you can specify a conditional event in one financial instrument. If the condition occurs this will trigger a separate order in the same or another financial instrument.

The conditional event is known as the trigger order. Once the trigger event has occurred the conditional or sleeping order becomes active. The trigger event will only happen once.

A sleeping order is an order that is eventually placed because the trigger condition is met. If filled, the sleeping order creates or closes a position on your account.

Different types of Triggers for various strategies and scenarios

Price Trigger – set a specific price

• Allows you to create a trigger event based on a price below or above the current price of the financial instrument.
• If the financial instrument’s price is eventually equal to or crosses through the specified trigger, the sleeping order is activated.
• The trigger price can be the financial instruments current price (last traded, bid or ask) or the opening price.
• Useful for Options trading, to execute a trade in Options based on the price action in the underlying.

Distance Trigger – set a distance to the current price

• Allows you to create a trigger event based on the distance (specified in the number of points) to either the financial instruments highest or lowest price (from the time the condition is set).
• If the market continues to trend higher or lower in a tight range, the actual price that will trigger the order will trail the market in the relevant direction.
  • For a trigger below the high, the financial instrument’s price would need to fall the specified number of points, or more, from the high to trigger the sleeping order.
  • For a trigger above the low, the instrument’s price would need to rise the specified number of points, or more, from the low to trigger the sleeping order.
• Useful for reversal trades or existing positions (used as a Trailing Stop Loss).

Breakout Trigger – set two prices, one above and one below the current price

• Allows you to create a trigger event based on two set price levels relative to a financial instruments current price. One price would be above, the other below, the current price.
• If the financial instrument price moves to, or through either of the specified trigger prices, then the sleeping order is released.
• The trigger price can be the financial instruments last traded price or the opening price.
• Useful as an alternative to classic Take Profit or Stop Loss orders.