Support: Weekend Stop & Limit Orders
It’s important to understand that stop and limit orders are treated differently when placed during times when trading is closed due to a holiday or weekend.
If the market you are trading opens at or beyond your stop or limit rate, then your stop or limit will be filled at that opening market rate. This means that your stop orders may be filled at rates that are poorer (or better) than the order rates. See the example below:
AUD/USD closes at .9350
EUR/USD closes at 1.5800
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You have a Buy Stop on AUD/USD at .9375.
You have a Buy Limit on EUR/USD at 1.5775.
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AUD/USD quoted at .9386/90
EUR/USD quoted at 1.5750/55
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Therefore, your AUD/USD stop will be filled at 1.9390.
Also, your EUR/USD limit will be filled at 1.5755.
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In the above example, you can see that leaving Buy Stop and Buy Limit orders over the weekend can result in unforeseen risks to forex and CFD traders.
CD01A.109.050708
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