Multiple online order types
The Marketmaker® trading platform provides you with access to a range of online order types which can be used to limit your losses and maximise your profits. At CMC Markets all the orders mentioned below can be placed on any trade at any time during market hours completely free of charge.
Limit order
A Limit order allows you to predetermine a price at which you want to sell above the current price or buy at a level below. This means you can predefine the level you want to take a profit or open a trade at a more favourable rate than the current price of an instrument without constantly having to watch the markets.
EXAMPLE OF A LIMIT ORDERYou have bought (long) 1,000 Share CFDs at an opening price of $5.00. You believe the Share price will strengthen to $5.20. You place a GTC 'limit order' to sell 1,000 Share CFDs at $5.20. | |
Stop Loss order
Stop Loss orders can be used to limit your trading risk and are an essential part of disciplined trading. Using stops means you are automatically taken out of a position if the market moves against you, effectively limiting your loss. Stop losses can also be used to lock in profit. As the market moves in your favour you can move your stop order with the prevailing price, locking in profit if the market suddenly moves against you. This is known as a trailing stop.
Example of a Stop Loss orderYou have bought (long) 1,000 Share CFDs at an opening price of $5.00. You believe the Share price will strengthen however, want to limit your losses and place a GTC stop loss order to sell 1,000 Share CFDs at $4.90, thus limiting your losses if the Share price falls to $4.90 or below. | |
If-Done order
An If-Done order is a combination of two orders and is perfect if you are unable to watch the market all the time but want to participate in a market move in your favour and/or exit a move against you.
EXAMPLE OF A IF-DONE ORDERA Share CFD is trading at $5.00 and you wish to buy if the price falls to $4.90 but exit if it continues to fall to $4.70. You would place an order to buy the Share CFD at $4.90; if done, sell at $4.70 on stop. | |
One Cancels Other order
A One Cancels Other order (OCO) has a number of advantages if you want to get in and out of the market without having to watch it constantly. It is the combination of both a 'limit' and a 'stop' order and can be used to take a profit if the market moves in your favour or to limit losses if the market moves against you.
Example of an OCO orderA Share CFD is trading at $5.00, you have an open long (buy) Share CFD position which you opened at $4.80. You wish to exit your position (at a profit) if the price goes up to $5.30 or if the market moves against you, you want to be stopped out at $4.70. You would place a Sell at $5.30 on limit OCO $4.70 on stop. Whichever order is executed first, the other order is automatically cancelled, hence the name One Cancels Other. | |
