Order-level

[marviin9]

Hi guys, 

2 weeks ago I created a buy order on a CFD trade. 
I opened the order while the market was closed.
Current share price while the market was closed was 23.35. 

I set my order level for 23.7 ! 

Next day the market opened at at price of 30.33 and my order opened automatically with the price of 30.33 (even if I set max. order level at 23.7) and within few hrs the price dropped to 28.00 and I lost 1,2K. 
Something like this happened to someone others before? 

[CharlotteIG]

On 11/03/2021 at 05:36, marviin9 said:

Hi guys, 

2 weeks ago I created a buy order on a CFD trade. 
I opened the order while the market was closed.
Current share price while the market was closed was 23.35. 

I set my order level for 23.7 ! 

Next day the market opened at at price of 30.33 and my order opened automatically with the price of 30.33 (even if I set max. order level at 23.7) and within few hrs the price dropped to 28.00 and I lost 1,2K. 
Something like this happened to someone others before? 

Hey @marviin9, 

Apologies that we missed this. 

When you place an order to open at a less favorable price this is called a stop order. Because you placed the order to buy above the current price this means you've instructed us to buy at that 23.7 or higher. If the market opens and slips up we will fill you at the next available price. 

Had the order have been below the closing market price this would be seen as a limit order and we would have only executed the order when the order price was hit or the market slipped lower than the market price. 

 

Buy Limit order- When you open a long order at a lower level than the closing/ current market price. We will only open your position when the market goes down to the order level you selected or lower. 

Buy Stop order - When you open a short order higher level than the closing/ current market price. We will only open your position when the market goes up to the order level you selected or higher. 

Sell Limit orders - When you open a short order at a higher level than the closing/ current market price. We will only open your position when the market goes up to the order level you selected or higher. 

Sell Stop orders - When you open a short order at a lower level than the closing/ current market price. We will only open your position when the market goes up to the order level you selected or higher. 

 

If you don't want to be subject to negative slippage with orders to open it may be best to only use limit orders. 

I hope this helps.

[Haarb]

@CharlotteIG this is very interesting and important the way this is structured.

 

What happens when you select an order level for the same price as the closing/current market price ? I assume that this will act as a Limit Order ?

I assume then it's more prudent to set a Limit Order.

Also should this read:

Buy Stop order - When you open a long order higher level than the closing/ current market price. We will only open your position when the market goes up to the order level you selected or higher.