Providers Execution and Protection · CFDs Trading Guide
Order types trade one uncertainty for another. Choosing the right instruction requires understanding both the trigger and what can happen after it.
Market orders prioritise immediate execution
A market order seeks an available execution rather than a specified price. Fast movement or insufficient liquidity can produce a different fill from the last displayed quote. Check whether the platform uses a price tolerance or rejection rule. A market instruction is not a guarantee that any size can transact instantly at one price.
Limit orders constrain price
A buy limit sets the highest acceptable purchase price and a sell limit the lowest acceptable sale price. A limit can remain unfilled or only partially fill under the provider rules. A chart touching the level does not necessarily prove executable liquidity existed for the full order. Decide how long the instruction remains active.
Stops introduce a trigger
A stop order becomes active after a specified condition. An ordinary stop can slip after triggering. A stop limit activates a limit instruction, which may not execute if price jumps through its acceptable range. Guaranteed stops are a separate contractual feature where offered. Always identify which bid or ask quote triggers the instruction.
Manage orders as positions change
After a partial exit, verify remaining quantity and attached orders. An old closing order can create unintended exposure if the platform does not link it correctly. Check expiry, cancellation confirmation and behaviour during market closures. A trade plan should state what to do when an entry fills partly or a protective instruction is rejected.
Try it yourself
A long position has a sell stop limit with trigger 98 and limit 97.50. The market jumps from 99 to an available bid of 96. What is the key risk?
Show the worked answer
The trigger may activate, but the sell limit cannot accept 96. The position can remain open and lose more. The price constraint does not guarantee an exit.
Further reading
Educational material, not a recommendation to trade. Numerical examples are hypothetical. CFDs involve leverage and substantial risk of loss. Availability, costs and protections depend on the contract, legal entity, jurisdiction and client classification.
