Order Execution

 

 

Order Execution

Supported Order types

The following order types are available:

ImmediateImmediate or Cancel (IOC) orders to trade immediately on the best available terms, with or without a defined tolerancet.

Resting Limit, Market, Stop and Stop Limit orders for longer duration'sduration’s i.e Day Order, Good Til. Cancelled etc.

Trailing Stops, where a Stop order can be specified to trail the market are supported.

All Resting Limit and Stop orders can be placed as either:

• Day Order (DO): Valid until the official close of trading on the day the order is placed (or on the subsequent business day for orders accepted during the weekend)
​ • Good till Date (GTD): Valid until the official close of trading on a date of your choice Good till Cancelled (GTC): Valid indefinitely unless or until specifically cancelled by you

Market Orders

A Market order is a traditional ‘at best’ instruction to trade as much of the order as possible on the best available terms in the market.

Market IOC (Immediate-or-Cancel) order - An instruction to buy or sell as much of the order as possible, immediately. Immediately means the order is placed with a 33 second Time-to-Live (TTL). AMarket IOC order can result in a partial fills. If the order cannot be filled in full, any remainingremaining amount will be cancelled. Price Tolerance cannot be added to a Market IOC order, meaning that the client cannot control the execution price range.

Market order - A Market order with Day duration to buy or sell as much of the order as possible on the best available terms in the market. AMarket order can result in a partial fills. If the order cannot be filled in full,any remaining amount will continue working for the set duration.

Limit Orders

A Limit order is an order to trade at a specified price or better if it is possible to do so within a specified time.

• Limit orders to buy can only be placed below the current market price
• Limit orders to sell can only be placed above the current market price

Limit IOC (Immediate-or-Cancel) order – An instruction to buy or sell as much of the order as possible at the client’s specified price, or better, immediately. Immediately means the order is placed with a 33 second Time-to-Live (TTL). ALimit IOC order can result in a partial fills. If the order cannot be filled in full, anyremaining amount will be cancelled.

Resting Limit order – A Limit order with variable duration (Day, Good-Til Cancelled etc) that rests at Saxo Bank at a specific price until triggered, cancelled or expired. A Resting Limit order can result in partial fills. If the order cannot be filled in full, any remaining amount will revert to a 'resting order'‘resting order’

Stop Orders

A Stop order is usually used to close a position when the market is going against it with a view to prevent further losses. It may also be used to open a position when the market moves through a chosen level. All Stop orders are triggered on the opposite side of the spread. These orders are typically filled at the stop level adjusted for the spread at the time.

A StopS order placed to Buy is treated as a Stop if Bid. A StopS order placed to Sell is treated as a Stop if Offer. This is to prevent orders from being triggered just because of a temporary large spread (maybe for a split of a second) as opposed to actual buyers and sellers being present in the market.

  • A Stop order to buy will be triggered when the bid price at which the client could undertake a transaction of equivalent size reaches the specified price level. Once triggered, the order will be treated as a Market order.​
  • A Stop order to sell will be triggered when the offer price at which the client could undertake a transaction of equivalent size reaches the specified price level. Once triggered, the order will be treated as a Market order.

Saxo Bank's order management system has certain client protection mechanisms in place that ensures that the vast majority of orders are filled on transparent prices without any slippage. Please see our Historical Stop Order fill statistics below.

Stop Limit order – A Stop Limit order with variable duration (Day, Good Til-Cancelled etc) that rests at Saxo Bank at a specific price until triggered, cancelled or expired. Once the price is triggered, theSpot Limit order is converted into a Resting Limit order at the Stop price. A Resting Limit order can result in partial fills. If the order cannot be filled in full, any remaining amount will revert to a 'resting order''resting order'. Trailing Stop Limit orders are not available.

Manual Order fill

Typically, only a very small proportion of orders placed with Saxo Bank require manual intervention.

Manual intervention may occur when the order is:

•  Large in size and cannot be automatically traded
•  There are highly volatile and/or illiquid market conditions
•  In an illiquid currency pair

During illiquid market conditions there are fewer market participants and thus dealers will need to check the price and also that the desired trade amount is actually available in the market.

Partial Order fill

A partial fill may occur in the event that there is not enough liquidity available at the price and/or at the size that the client wishes to trade.

An Immediate of Cancel (IOC)order will continue working until the full amount is filled as long as it is within the 33 second Time to Live (TTL), after which time the order will expire. If an IOCorder is only partially filled any remaining amount will be cancelled.

A Resting order will continue working until the full amount is filled as long as it is within the set duration (i.e. Day, Good-Til-Cancelled etc). If a Resting order is only partially filled, any remaining amount will revert to a 'resting order'‘resting order’ ​
Updated 15 November 2016