Advanced Order Types
Utilize advanced order types to automate your trading and manage positions effectively.
Automating Your Trading Strategy
Advanced order types allow you to automate entry and exit strategies, removing emotion from trading decisions and ensuring disciplined execution of your trading plan. Understanding and utilizing these tools is essential for professional-level Event Contracts trading.
This guide covers the most powerful order types available on the EXDGE platform and how to use them effectively in various market scenarios.
Essential Order Types
Market Orders
Execute immediately at the best available price. Use when speed of execution is more important than price precision.
Best For:
- • Liquid markets
- • Breaking news situations
- • Quick position exits
Avoid When:
- • Low liquidity
- • Large position sizes
- • Volatile markets
Limit Orders
Execute only at your specified price or better. Provides price certainty but no guarantee of execution.
Example:
Place a buy limit order at 45 when current price is 50. Order executes only if price drops to 45 or lower, ensuring you don't overpay.
Stop Orders
Trigger a market order when price reaches your specified level. Essential for risk management and breakout trading.
Example:
Buy stop at 60 when current price is 55. Order triggers if price rises to 60, allowing you to enter on breakouts.
Stop-Limit Orders
Combines stop and limit orders. Triggers at stop price but executes as limit order, providing both trigger control and price protection.
Example:
Stop at 40, limit at 38. If price drops to 40, a limit order activates to sell at 38 or better, preventing execution at unfavorable prices.
Advanced Order Strategies
Combine multiple order types to create sophisticated trading strategies that execute automatically based on market conditions.
OCO (One-Cancels-Other) Orders
Place two orders simultaneously - when one executes, the other automatically cancels. Perfect for setting both profit targets and stop losses.
Practical Example:
Current Position: Long at 55
OCO Order 1: Sell limit at 75 (profit target)
OCO Order 2: Sell stop at 45 (stop loss)
Whichever level is hit first executes, and the other order automatically cancels.
Bracket Orders
Automatically place profit target and stop loss orders when your entry order fills. Ensures every position has predefined risk parameters.
Practical Example:
Entry: Buy limit at 50
Profit Target: Sell at 70 (+20 points)
Stop Loss: Sell at 40 (-10 points)
All three orders placed simultaneously. When entry fills, profit and stop orders activate automatically.
Trailing Stop Orders
Stop loss that automatically adjusts as price moves in your favor, locking in profits while allowing winners to run.
Practical Example:
Entry: Long at 50
Trailing Stop: 10 points
Price rises to 70: Stop adjusts to 60
Price rises to 80: Stop adjusts to 70
Stop only moves up, never down, protecting profits while allowing position to capture further gains.
Iceberg Orders
Large orders split into smaller visible portions to avoid moving the market. Only a fraction of total order size is displayed at any time.
Practical Example:
Total Order: 100 contracts
Visible Size: 10 contracts
As each 10-contract portion fills, another 10 contracts appear automatically
Prevents large orders from signaling your intentions and moving prices against you.
Time-Based Order Conditions
Add time conditions to orders for precise control over when they activate and expire.
Good-Till-Cancelled (GTC)
Order remains active until filled or manually cancelled. Use for patient limit orders at favorable prices.
Good-Till-Date (GTD)
Order expires at specified date/time. Perfect for event-driven strategies where opportunity window closes at specific time.
Immediate-Or-Cancel (IOC)
Execute immediately for available quantity, cancel remainder. Useful for testing liquidity without leaving orders in the book.
Fill-Or-Kill (FOK)
Execute entire order immediately or cancel completely. Ensures you get full position at desired price or nothing.
Order Type Selection Guide
Choose the right order type based on your trading scenario and objectives.
For Entry Orders
Breakout Trading:
Use stop orders above resistance
Value Buying:
Use limit orders at support levels
Urgent Entries:
Use market orders for immediate execution
For Exit Orders
Profit Taking:
Use limit orders at target levels
Stop Losses:
Use stop orders below support
Trend Following:
Use trailing stops to lock profits
Best Practices
Always Use Stop Losses
Never enter a position without a predefined stop loss. Use bracket orders to ensure stops are placed automatically with every entry.
Account for Slippage
In volatile markets, stop orders may execute at worse prices than specified. Use stop-limit orders when price precision is critical.
Monitor Order Status
Regularly check that orders are active and properly configured. Technical issues or connectivity problems can prevent orders from executing.
Test in Demo First
Practice with advanced order types in demo mode before using them with real capital. Understand exactly how each order type behaves.
Keep Orders Simple
Don't over-complicate your order strategy. Use the simplest order type that achieves your objective. Complexity increases error risk.
Common Order Mistakes
Wrong Order Direction
Placing buy instead of sell orders (or vice versa). Always double-check order direction before submitting.
Incorrect Price Levels
Setting stop losses too tight or profit targets too ambitious. Use realistic levels based on market volatility and technical analysis.
Forgetting to Cancel Orders
Leaving old orders active that no longer align with your strategy. Review and cancel outdated orders regularly.
Over-Reliance on Automation
Trusting automated orders without monitoring. Always supervise automated strategies and be ready to intervene if needed.