order level?

[Guest darranhamaflo]

Hi. Looking to sell some of my holdings. I understand all the parts to the 'order form' but don't know what 'order level' is. Can anyone explain?

[HannahL]

Hi , thanks for the post.

 

'Order level' just refers to the price at which you want to enter the market, and buy or sell your holding.  Bear in mind that this is not a guaranteed level, rather one through which the market must move for your order to be triggered.

 

Hope that helps!

 

Thanks,

Hannah

[JamesIG]

Hey all - I know that no one has replied to this thread in a long time, however i can see that it actually receives a significant viewership each week and therefore just wanted to flesh out the reply given by hannah and add a picture with a worked example.

 

As stated above, the 'Order Level' seen on a share dealing ticket (or other CFD or spread dealing ticket) will be the point at which the market needs to trade through before your deal is executed. In other words, the market needs to move through that price point for shares to be bought or sold. 

 

Lets take the below example deal ticket using the old 'classic' platform for share dealing...

 

 

 

What the above is say is that BARC is currently priced around 209 roughly, and that I am looking to BUY a quantity of 1000 shares. I will make the trade a 'Limit Day' (i.e. if the trade isn't triggered by the end of the day then it's going to cancel), but I have a limit on the maximum price I am willing to pay. I am saying that I will set a limit of 200 via my order level, so if the price comes down to that exact level, my deal will go through and I will look to BUY the 1000 shares at 200. 

 

 

 

The new desktop trading platform - the same thing is called 'Price Level'

Below is an image of the new desktop dealing platform. You can see that on the 'orders' tab you will be able to set a specific price level rather than an order level. It means the same thing and is the level the market needs to trade through for your order to be executed. 

 

[Guest shlim-guest]

Thanks thats useful, i have another follow up question. 

 

Using the example above, say that BARC shares are priced at 209 and I put my order level down as 210, that means the shares will be purchased immediately, is that correct? 

 

What if I put that order level down at midnight when the market is closed. Then will the order only execute when the market opens? 

 

I'm trying to purchase additional Amazon shares at 9am UK time, and have put my order level above the level that it is priced. Aware that NASDAQ only opens at 2.30pm UK time, however there seem to be minor fluctuations with the share price and it seems to be going up. If my order level is below the share price when the market opens, will my order not be executed? Or will it take into account what the share price was when I actually  placed the order? 

[Guest Steve]

On 13/07/2018 at 11:56, Guest shlim-guest said:

Thanks thats useful, i have another follow up question. 

 

Using the example above, say that BARC shares are priced at 209 and I put my order level down as 210, that means the shares will be purchased immediately, is that correct? 

 

What if I put that order level down at midnight when the market is closed. Then will the order only execute when the market opens? 

 

I'm trying to purchase additional Amazon shares at 9am UK time, and have put my order level above the level that it is priced. Aware that NASDAQ only opens at 2.30pm UK time, however there seem to be minor fluctuations with the share price and it seems to be going up. If my order level is below the share price when the market opens, will my order not be executed? Or will it take into account what the share price was when I actually  placed the order? 

I have the same question. 

[Cher]

On 13/07/2018 at 10:56, Guest shlim-guest said:

Thanks thats useful, i have another follow up question. 

 

Using the example above, say that BARC shares are priced at 209 and I put my order level down as 210, that means the shares will be purchased immediately, is that correct? 

 

What if I put that order level down at midnight when the market is closed. Then will the order only execute when the market opens? 

 

I'm trying to purchase additional Amazon shares at 9am UK time, and have put my order level above the level that it is priced. Aware that NASDAQ only opens at 2.30pm UK time, however there seem to be minor fluctuations with the share price and it seems to be going up. If my order level is below the share price when the market opens, will my order not be executed? Or will it take into account what the share price was when I actually  placed the order? 

I have the same question

[JReyTheTrader]

I tested this today with BT. I ordered or set an order at 102 over the weekend when price was showing 101.8... woke up this morning on Mon and IG had executed the order at 108!!!!!

so lesson learnt.. just wait and execute yourself when markets reopen don’t just let the platform do as it pleases

[CharlotteIG]

On 24/08/2020 at 11:14, JReyTheTrader said:

I tested this today with BT. I ordered or set an order at 102 over the weekend when price was showing 101.8... woke up this morning on Mon and IG had executed the order at 108!!!!!

so lesson learnt.. just wait and execute yourself when markets reopen don’t just let the platform do as it pleases

Hey @JReyTheTrader, 

If you set an order to open and the market price is at a more favorable price than the current market price this is seen as a stop order to open. If you use this we can execute the trade at the price you selected or the next available price. 

In your example when buying stock at a less favorable price that the market price. The market was at 101.8 and you asked to be opened at 102 or higher. When the market opened it opened up which is why it would have gone through you price 102 executing the order but that price was not available so we opened the order at 108. 

If you had set a market order to open at 101 and the market opened down at 98, we would have opened you here and this would be seen as positive slippage.

Apologies if you were not aware of this but hope it clarifies.