Advanced Order Types are Now Available on FSMOne.com

These are the three different Advance Order types that will be available on FSMOne.com:

1)      Price Triggered Orders (PTO) - only available for SGX trades

2)      Stop Limit Order - only available for US exchanges trades

3)      Stop Order (Market) - only available for US exchanges trades

What are Price Triggered Orders (PTOs)

Price Triggered Orders (“PTOs”) allow market participants to buy or sell an instrument when the trigger price condition is reached. The order will not be visible to the market before the trigger condition is met. When the trigger price is reached, the order will be triggered and converted into an active tradeable order.

PTOs can be placed with any trigger price range with two triggering order types: Limit Order and Market Order. PTOs can only be placed during market open sessions. PTOs will expire at the end of the day if the triggering condition is not met.

When to use Price Triggered Orders (PTOs)

Price Triggered Orders benefit investors by allowing them to trade without having to constantly monitor market movements.

PTOs can be used to:

a)            Minimise a loss or protect a profit on an existing long or short position:

PTOs can be used as a protection against a huge loss. For instance, in a falling market, an investor who is long on a stock may want to use a PTO market or limit sell order to minimise the loss faced. Similarly, in a rising market, an investor who is long on a stock may enter a PTO market or limit sell order to protect a profit.

b)            Initiate a new position:

PTOs are useful for breakout trades where an investor wants his/her order executed only if the market trades past a particular price (i.e. resistance).

What are the conditions available in Price Triggered Orders?

Trigger Price Type: Last Done, Best Bid and Best Ask
Trigger Direction: Greater Than or Equal ≥ and Less Than or Equal ≤

Note: 

• Price Triggered Orders will expire if trigger conditions are not met.
• Price Triggered Order Limit Price will be rejected by the exchange if the limit price falls out of range.

How to place Price Triggered Orders

1)      Action: Select Buy or Sell

2)      Order Type: Select Price Trigger Order

3)      Trigger Condition: Select Trigger Price Type and Trigger Direction, and key in Trigger Price

4)      Trigger Order Type: Select Limit Order or Market Order

5)      Order Validity: Select DAY or GTD (Good-Till-Date)

6)      Limit Price: Key in your limit price (you may skip this if you have previously selected Market Order)

7)      Quantity: Key in your quantity to trade. 

What are Stop Orders?

Stop orders will be converted into an actual Market order in the order book once the target price (Stop price) as specified by the investor has been met.

There are 2 Types of Stop Orders:

1)      Stop Limit Order

Stop-limit orders will be converted into a Limit order in the order book once the target price (Stop price) as specified by the investor has been met.

2)      Stop Order (Market)

Stop order will be converted into an actual Market order in the order book once the target price (Stop price) as specified by the investor has been met.

When to use Both Stop Limit Order and Stop Order (Market)

When an investor wants to add a new position and identifies a resistance point on a chart, he/she can place stop orders to trigger a buy when the Stock / ETF price breaks higher than the resistance. A Stop Order (Market) will be executed at the Market price when triggered (this may be risky as the investor may be buying at an exceptionally high price during the breakout) and a Stop Limit Order will be executed at a desired limit price when triggered.

When an investor wants to liquidate his/her position and identifies a support price point on a chart, he/she can place stop orders to trigger a sell when the Stock / ETF price breaks lower than the support. A Stop Order (Market) will be executed at the Market price when triggered (this may be risky as the investor may be selling at an exceptionally low price) and a Stop Limit Order will be executed at a desired limit price when triggered.

What are the placement conditions for Stop Orders?

Stop Limit Orders

1)      Buy: Trigger price must be Higher than the Ask Price.

Limit Price must be equal or higher than the Ask Price.

2)      Sell: Trigger price must be Lower than the Bid Price.
         Limit Price must be equal or lower than the Bid Price

Stop Orders (Market)

1)      Buy: Trigger price must be Higher than the Ask Price.

2)      Sell: Trigger price must be Lower than the Bid Price.

Note: All Stop orders will be rejected if any of the placement condition is not fulfilled.
         

How to place Stop Limit Order

1)      Action: Select Buy or Sell

2)      Order Type: Select Stop Limit Order

3)      Order Validity: Select DAY or GTD (Good-Till-Date)

4)      Trigger Price: Key in the price to trigger

5)      Limit Price: Key in your limit price

6)      Quantity: Key in your quantity to trade.

How to place Stop Order (Market)

1)      Action: Select Buy or Sell

2)      Order Type: Select Stop Order

3)      Order Validity: Select DAY or GTD (Good-Till-Date)

4)      Trigger Price: Key in the price to trigger

5)      Quantity: Key in your quantity to trade.