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What is a Limit order?
By placing a Limit Order, a client is requesting
to buy or sell a foreign currency position at a
specified price, if obtainable. A Limit Order to
buy generally will be executed when the ask
price equals or falls exceeds the price or
exchange rate specified in the Limit Order. A
Limit Order to sell generally will be executed
when the bid price equals or falls or exchange
rate specified in the Limit Order. A Limit Order
remains in effect until cancelled by the client
or, if it is linked to an open position, until
that position is liquidated. Clients should
note, however, that market conditions may often
prevent execution of an individual Customer's
Limit Order despite other dealing activity at
that price level.
What is a Stop Loss order?
By placing a Stop Loss Order, a client is
requesting to liquidate a foreign currency
position at a specific price. These orders are
often used to minimize exposure to losses if the
market moves against a trader's position. Buy
stops are buy orders for a predetermined price
over the current price of the market. This order
becomes a "Buy at the market" order if the
market is at or above the price of the stop
order. Sell stops are sell orders for a
predetermined price below the current price.
Sell-stop orders become "Sell at the market"
orders if the market trades at or below the
price of the stop order. A stop-loss order
placed on a buy position is an order to sell
that position. A stop-loss order on a sell
position is an order to buy that position. A
stop-loss order remains in effect until the
position is liquidated or cancelled by the
client. Clients should note, however, that
market conditions may often prevent execution of
an individual Customer's Stop Loss Order at or
even around the specified price despite other
dealing activity at that price level.
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