Pending Order, Take Profit and Stop Loss Execution
Author: FXOptimax Support Reference Number: AA-00232 Views: 4866 Created: 2011-06-12 06:00 Last Updated: 2013-05-01 13:02 0 Rating/ Voters

Buy Stop, Sell Stop, Buy Limit, Sell Limit, Stop Loss and Take Profit will be executed on best effort basis according our execution model. Generally there are 5 possible execution results :

1. Executed exactly at requested price
This is rarely happened on 5-digits account, mostly happened at 4-digits account. The pending orders/SL/TP are executed exactly at the requested price without any slippage.

2. Executed at better price
In some cases, the executed price is better than requested price and it surely gives more benefit for traders.

3. Executed at worse price
During volatile movement and/or low liquidity session, the executed price can be worse than requested price. FXOptimax allow all trading strategies, however we encourage to avoid gap/breakout trading during volatile movement (such as news releases).

4. Rejected with comment "Cancelled by dealer"
4.1 If your free margin is less than 0, Stop orders (and Limit orders) will not be executed.
4.2 If your margin level after the pending order is executed, drops below 120%, Stop orders (and Limit orders) will not be executed, including pending order intended for hedging. This mechanism is intended to protect customer from margin call risk. 

Case Illustrations: 
You are having 1 lot buy on EUR/USD and placing a sell pending order to hedge your 1 lot order. When the sell pending order is hit, There are 2 possibilities:
Case 1:
The margin level is 120% or bigger right after the order is executed, the sell pending order will be executed and the used margin will drop to zero afterward since your your order is fully hedged.
Case 2:
The margin level is less than 120% right after the order is executed, the sell pending order will be rejected with comment 'cancelled by dealer', since the margin is not enough to cover the required amount before the account becomes fully hedged.

5. Not Executed

If price (Bid for Sell Stop, Sell Limit, SL for Buy, TP for Buy, Ask for Buy Stop, Buy Limit, SL for Sell, TP for Sell) only hit the requested price ONCE (1 tick), that tick will be ignored. This is a protection mechanism provided by MetaTrader 4 system to prevent an order being executed because of spike/false price.

If your orders are not executed and you believe there is none of the condition above is occurred, please fill the Trade Audit form inside your MyFXOptimax Personal Area.

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