1) Common description
1.Unfilled or partially filled Limit Orders may be cancelled or modified
Unfilled or partially filled Limit Orders can be cancelled or modified by the client. Cancellation or modification requests will be rejected if the Limit Orders are completely filled during the process.
2.Period of Validity
Day: Unfilled orders will automatically be cancelled at the end of the trading session.
GTC (Good till Cancel): The order will remain valid until it is completely filled or cancelled(automatically/voluntarily).
Please note that GTC orders will automatically be cancelled under the following conditions:
If the order is not filled after 90 calendar days;
For GTC Order of Futures, the order will automatically be cancelled on the last trading day or 3 trading days prior to the opening day, dependent on the type of Futures contract and the Direction of the Order.
For GTC Order of Stocks, should corporate actions (stock split, reverse stock split, merger and dividend) occur, the order will automatically be cancelled before the market opens on the execution date of corporate action.
3.Statement of order handling using price capping
In accordance with regulatory obligations that the brokers are expected to have certain controls in place to prevent orders with market disruption risks (such as sudden price fluctuations) from being submitted to the market, the executing brokers may set price caps on buy orders and price floors on sell orders.
Please note that while such price limits are set to maximize order execution while minimizing price risk, there exists a possibility that a trade will be delayed or may not take place.
Order type：
1. Market Order
Market Order ("MO") is an order placed without price setting by clients themselves at prevailing market prices. MO enables the orders to be filled quickly, but can not guarantee the execution price. For illiquid stocks, or for a fast-changing market, MOs can be filled at prices that are much higher or lower. Please assess the risks carefully before placing an order.
Instructions and precautions:
MOs can only be placed during the regular trading hours;
When the MO is placed, the system will earmark a portion of the purchasing power to facilitate the successful execution of the orders as well as maintain a stable risk control value for the account. After the order is filled or cancelled, the earmarked purchasing power will then be automatically released.
Since market orders and orders that rely on market orders (such as stop-loss orders) cannot guarantee the transaction price, market systems that do not support market orders will automatically convert market orders into price orders (there is a 20% price limit for opening orders) to help buffer any drastic price fluctuation.
2. Limit Order
Limit Order ("LO") is an order to be filled at a specified price or better.
The range of transaction price can be locked in with no guarantee.
However, if LO is used, the market opportunity to fill the order may be missed. If the stock price does not reach or drop to the limit price, the order will not be executed.
3. Stop Loss Order
A stop loss order is a market order that is placed automatically by the system to initiate a buy or a sell order based on the direction selected by clients once the stock price has reached or breached a specified price (the “stop price”) set by clients.
Instructions and precautions:
There is no guarantee that the order will be successfully placed and filled. Insufficient purchasing power or positions may result in failure of the order to be triggered.
The order is triggered does not necessarily mean that it will be filled. The stop loss order is the market order which the system automatically places for investors when the trigger price(stop price) is reached. If the order is not matched, it will automatically be cancelled at the end of the market day (except GTC orders).
Q & A with stop loss orders:
-Q: Can a stop loss order be used to take profits? For example, you enter a position at USD 50 and want to place the market order to close off the position when the price of the underlying reaches USD 60. If so, is it appropriate to place a stop loss sell order with a stop loss price of USD 60?
A: No. The above situation will result in the stop loss order to be executed immediately as the current price of the underlying is lower than USD 60.
-Q: What is the appropriate order to use in order to take profits when the underlying reaches USD 60?
A: You can place a limit order to sell at USD 60, in this way the sell order will be executed at USD 60 or better.
-Q: Can I place a stop loss order when I do not have corresponding positions? Are there any impacts?
A: Yes. Usually a stop loss order is a pending order when there are corresponding positions in order to limit losses. Even if there are no corresponding positions, you can still place a stop loss order. In this way, the sole stop loss order can, to a certain degree, breach the tracking of specific trading price.
For example, the current traded price for contract A is USD 3,500, and the investor anticipates that once the contract price falls below the key support region of USD 3,000, its price will continue to fall, therefore he/she would like to initiate a short position. In this case, the investor can place a stop loss sell order with a stop loss price of USD 3,000 without holding any positions of the underlying security. This would also mean that when the price of contract A reaches USD 3,000 or less, the system will place a market sell order for the contract and thus the investor would have opened a short position on contract A.
Key important factor for the investor to take note of is that, as this is a stop loss order,a market order will be triggered once the underlying reaches or breaches the "stop price". Clients will not have control over the price of which the contract would be done.
4. Stop Limit Order
Stop Limit Order requires the clients to enter a specified stop price and a specified limit price. Once the stock price reaches the stop price, a limit order will be automatically initiated.
Stop limit orders will be placed in the form of limit orders, which allow the investors to get their orders done at a more favourable price. However, if the price falls quickly below the limit price, the order may not be filled. Stop limit orders may be limited to certain securities.
The difference between a stop order and a stop limit order:
Both the stop order and the stop limit order are filled when the market price reaches the stop loss price, but the processes how they trigger the orders are different.
The stop order will ensure that the order can be filled as quickly as possible through the form of market orders. However, it does not guarantee the price of which the order will be filled.
Stop limit orders, on the other hand, will initiate limit orders after the stop limit has been triggered. This allows the order triggered to be filled at a price that is equal to or better than the limit price set by the clients. There is no guarantee that the order will be filled.
5.Conditional Order
Conditional Order: Clients are required to set the trigger conditions. Once the trigger conditions are met, the entrusted order (either market order or limit price order) will be initiated. Clients can make adjustments and cancellation to the trigger conditions as long as the trigger condition is not met.
Conditional order will only be triggered during regular trading hours (excluding Hong Kong stocks auction period). When a pre-market conditional order is placed, the entrusted order will only be triggered once the conditions are met during regular trading hours.
Order tips:
If the conditional character selected is <=, the trigger price must be lower than the last traded price (triggered higher than the last price);
If the conditional character is selected >=, the trigger price must be higher than the last traded price (triggered lower than the last price)
Prior to the order being triggered, you can cancel the order or modify the trigger condition, order price, and order quantity.
Adjustments and withdrawal of the order that was triggered upon met conditions that was set can still be made as long as the said order is not filled.
6.Attached orders
Attached order (Additional order) allows the primary order take profit or stop loss. The attached order can be in the form of a take-profit order (limit order) or the form of a stop loss order (stop limit order/stop order)
Instructions and precautions:
Only one sub-order can be attached. When the main order is cancelled, the associated sub-orders will also be cancelled. Sub-orders can be cancelled individually.
When the main order is partially executed, the sub-order will also be initiated. The quantity for the initiated sub-order will not exceed the quantity done for the main order.
When the main order is a market order - As market order is usually filled quickly, the sub-order will be triggered upon the fulfilment of the main order.
Sub orders can only be initiated during regular trading hours.
The validity period of the sub-order is independent of that of the main order. You can choose either "Valid during regular trading hours" or "Valid until order cancellation".
for example:
XYZ is currently traded at USD50. Client intends to buy 100 shares of XYZ at USD49 and then take profit by selling the 100 shares of XYZ at USD55.
During regular trading hours, client can submit an Attached Order. The Main Order will include a limit order to buy 100 shares of XYZ at the Limit price of USD49 and thereafter Client can include the Take profit Order to sell the 100 shares of XYZ at USD55 under the Attached Order segment.
In the event where both orders are filled, client will not have any outstanding position in XYZ but rather, left with a profit of USD600 (excluding commissions and other charges) as the Take Profit Order would have then closed off the initial buy order.
7. OCA (One-Cancels-All) order
The OCA order: The client can create an OCA order group. When an order within the OCA order is filled, all other orders within the group will be cancelled.The OCA orders give clients the flexibility to set any order in the form of an order group. However, the order can only be cancelled if it's not filled; before one specific order is cancelled, the risk exists that different orders in OCA order group may be filled.
Introduction and precautions:
Available types of orders can be set in OCA order are limit order, stop loss order, stop-loss limit order;
The amount of occupied funds will be calculated according to the order with the maximum occupied funds in the OCA orders.
When any one order in the OCA order group is cancelled, all other orders within the OCA order will be cancelled, for example, when the day order expires at the end of the regular trading day;
Within the OCA orders, the underlying security of different orders should be the same; within the OCA orders, the quantity of each order can differ.
8. Trailing Stop Order
A Trailing Stop Order is a type of Market Order that automatically adjusts the time that such an order is sent to the market according to the trade direction and trailing amount/percentage set, and how the market price fluctuates. When an order will be sent to the market is dependent on when the market price reaches the last Trigger Price after the order is placed, thus useful for presetting stop-loss, profit-taking, and other preset buying/selling plans etc.
For a trailing stop buy order, the Trigger Price is the lowest market price after the order is placed plus the trailing amount/percentage set by a client. The market price must rise to or exceed the last Trigger Price before the Market buy order will be sent to the market.
Using an example with a trailing percentage set: If the market price is 100 USD at the point of a client placing a trailing stop buy order with a 20% trailing percentage, the initial Trigger Price will be 120 USD. When the market price drops to 80 USD, the Trigger Price will be adjusted downwards proportionally to 96 USD (80 USD * 1.2). If the market rebounds back from 80 USD to 90 USD, the Trigger Price will remain at 96 USD. The Market buy order will only be sent to the market if the market price continues to rise to or exceeds the last Trigger Price after the 80 USD low.
For a trailing stop sell order, the Trigger Price is the highest market price after the order is placed minus the trailing amount/percentage set by a client. The market price must fall to or below the last Trigger Price before the Market sell order will be sent to the market.
Using an example with a trailing amount set: If the market price is 100 USD at the point of a client placing a trailing stop sell order with a 10 USD trailing amount and a 1 USD Offset, the initial Trigger Price will be 90 USD. When the market price rises to 110 USD, the Trigger Price will be adjusted upwards to 100 USD (110 USD - 10 USD). If the market price then falls back from 110 USD to 105 USD, the Trigger Price will remain at 100 USD. The Market sell order will only be sent to the market if the market price continues to fall to or below the last Trigger Price after the 110 USD high.
Important to note:
A trailing stop order does not require a client to hold any position in the corresponding asset of the order as a prerequisite for placing an order with the exception of an options contract's trailing stop order;
For the U.S. stock market, trailing stop orders are only placed for and sent to the regular market sessions;
The trailing amount/percentage set must be greater than 0.
9. Trailing Stop Limit Order
A Trailing Stop Limit Order is a type of Limit Order that automatically adjusts its order price and the time that such an order is sent to the market according to the trade direction, trailing amount/percentage, and an Offset amount set, and how the market price fluctuates. When an order will be sent to the market is dependent on when the market price reaches the last Trigger Price after the order is placed, thus useful for presetting stop-loss, profit-taking, and other preset buying/selling plans etc.
For a trailing stop limit buy order, the Trigger Price is the lowest market price after the order is placed plus the trailing amount/percentage set by a client. The market price must rise to or exceed the last Trigger Price before the limit buy order can be sent to the market.
Using an example with a trailing percentage set: If the market price is 100 USD at the point of a client placing a trailing stop limit buy order with a 20% trailing percentage and a 1 USD Offset, the initial Trigger Price will be 120 USD. When the market price drops to 80 USD, the Trigger Price will be adjusted downwards proportionally to 96 USD (80 USD * 1.2). If the market rebounds back from 80 USD to 90 USD, the Trigger Price will remain at 96 USD.
The limit buy order will only be sent to the market if the market price continues to rise to or exceeds the last Trigger Price after the 80 USD low, in this case with a 97 USD order price (96 USD + 1 USD offset).
For a trailing stop limit sell order, the Trigger Price is the highest market price after the order is placed minus the trailing amount/percentage set by a client. The market price must fall to or below the last Trigger Price before the limit sell order can be sent to the market.
Using an example with a trailing amount set: If the market price is 100 USD at the point of a client placing a trailing stop limit sell order with a 10 USD trailing amount and a 1 USD Offset, the initial Trigger Price will be 90 USD. When the market price rises to 110 USD, the Trigger Price will be adjusted upwards to 100 USD (110 USD - 10 USD). If the market price then falls back from 110 USD to 105 USD, the Trigger Price will remain at 100 USD.
The limit sell order will only be sent to the market if the market price continues to fall to or below the last Trigger Price after the 110 USD high, in this case with a 99 USD order price (100 USD - 1 USD offset).
Important to note:
A trailing stop limit order does not require a client to hold any position in the corresponding asset of the order as a prerequisite for placing an order with the exception of an options contract's trailing stop limit order;
For the U.S. stock market, trailing stop limit orders are only placed for and sent to the regular market sessions;
The trailing amount/percentage and offset amount set must be greater than 0.