ORDER AND STOP LOSSES

Please note that a stop-loss is automatically generated with every trade/bet you make.

E*TRADE Spread Betting offers the following orders:

· Stop-Loss orders
· Limit orders
· New orders
· Contingent (‘if done’) orders

Please note that ALL orders are executed on ‘our’ ( E*TRADE Spread Betting ) quote. Every market has a minimum order distance level from the current price at which orders will be accepted. Please contact us for specific levels. None of these orders are ‘guaranteed’. Please see below for further details.

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What is a Stop-Loss?

A ‘Stop-Loss’ is the method used to limit the losses on an individual bet. It literally means ‘when the loss on a bet reaches the point where I no longer wish to risk any more money then close me out of my bet’ (or ‘Stop’ me out).

E*TRADE Spread Betting automatically apply a stop-loss to every new bet/trade. You can either select the automatic stop level that is generated by the system or you can specify your preferred level. If you chose to keep the automatic stop, the level applied will be based on 80% of the funds available in your account or it will be set at the Max CGSL (Maximum Computer Generated Stop-Level). Details of the Max CGSL for each product can be found in our Product Information or if you click here.

Please note that we hold an additional 20% of your funds to allow for slippage or a market gap as we do not offer guaranteed stops. Therefore, you could lose more than your initial deposit should a market gap through your stop level. A market gap could occur due to volatile markets or because of movements in the underlying markets during the hours when E*TRADE Spread Betting is closed and does not offer a quote.

All stops are effectively Good Till Cancelled (GTC).

On the E*TRADE Spread Betting system, you can also attach a Stop-Loss and a Limit to a New Order.

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What is a New Order?

A New Order is an order that is not attached to any existing bet and is independent of any other instruction. A New Order is used to open a new bet at a level in the market, which has not yet been reached.

The New Order functionality is useful for placing orders at critical market points so that you do not have to be watching the markets every moment of every day to ensure that you do not miss an opportunity.

New orders may be Good Till Cancelled (GTC), Good Till End of Day, (GFD, which is good till the last time that E*TRADE Spread Betting quotes that market on that business day or the time that that market closes, whichever is earlier) or Good Till UK Time (which is good till a date and time specified by you).

It is possible to attach a Stop-Loss and Limit Order to New Orders (see Beginners Guide for details).

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What is a Limit Order?

A Limit Order is a specific order placed against an existing open bet and is often used as a method of taking your profit on an open position when the E*TRADE Spread Betting quote reaches a level at which you wish to exit your bet (i.e. it is more generally considered to be the opposite of the stop-loss as it could be called a Take Profit order).

Placing a Limit Order and thus attaching it to an existing bet creates an ‘OCO’ or ‘One Cancels Other’ order because either your Stop or your Limit will be executed if you do nothing and the market moves to either level.

Limit Orders may be Good Till Cancelled (GTC), Good Till End of Day, (GFD, which is good till the last time that E*TRADE Spread Betting quotes that market on that business day or the time that that market closes, whichever is earlier) or Good Till UK Time (which is good till a date and time specified by you).

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What is a Contingent (‘if done’) order?

A Contingent or ‘If Done’ order is an order that is not activated until another separate order is executed. The contingent order facility enables you to attach orders to an already existing order so that you do not have to watch the markets at every moment of the day.

On the E*TRADE Spread Betting system, you can create two types of Contingent orders as follows:

- Attach a Limit Order to a New Order
- Attach a Stop-Loss order to a New Order

Contingent / ‘If Done’ orders may be Good Till Cancelled (GTC), Good Till End of Day, (GFD, which is good till the last time that E*TRADE Spread Betting quotes that market on that business day or the time that that market closes, whichever is earlier) or Good Till UK Time (which is good till a date and time specified by you).

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What is an OCO (one-cancels-other) order?

This is a common order and it consists of two 'New Orders' where if one is filled, the other order is automatically cancelled.

For example, if the FTSE were trading at 4900 you might place a New Order to buy £10 FTSE at 4915, if the FTSE rallied, with an OCO order you could then also work another instruction against your buy bet e.g. a sell of £10 at 4875 to be activated if the market fell. Whichever order was hit first would be filled whilst the computer would automatically cancel the other. (OCO one cancels other).

Using the E*TRADE Spread Betting order facility, you can also add (if you wish) pre-determined Stops and Limit Orders against both OCO orders, the action of cancelling one order when the other is filled would automatically delete the stop and limit order attached to the cancelled order.

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