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What are the different order types on Stake AUS?

We offer three types of orders on Stake AUS:  

• Limit
• Market 
• Stop    

Limit orders on Stake AUS

A limit order is an order to buy or sell a whole number of shares at a specific limit price.

A BUY limit order can only be executed if the share price hits your set limit price or lower. A SELL limit order can only be executed if the share price hits your set limit price or higher.

Please note, limit orders are not always guaranteed to execute. If your set limit price is not immediately available in the market or not reached at a later point, the limit order will not be executed. In this instance, the order will remain in the market until it’s either partly or fully filled, is cancelled or has expired.

Limit orders placed outside of trading hours (10:00 am - 4:10 pm AEST/AEDT) will be placed in a queue and submitted into the market on the following trading day. 

Expiry options
There are two types of expiry instructions that can be provided when placing a limit order: End of Day (EOD) and Good-Til-Cancelled (GTC). 

EOD orders will expire at the end of that trading day, if not executed. GTC orders (that are not cancelled or filled) are valid and remain active in the market for your choice of either 30 or 90 days.

 

Market Orders on Stake AUS

A market order is an order to buy or sell shares at the current market price at the time of placement. 

Market orders work a little differently on the Australian markets when compared to the U.S. markets.

Once a market order is placed, a limit order is entered into the market with a limit price slightly above (for buys) or below (for sells) the share’s reference price (this is typically the last traded price). This is to maximise the chance that the order will execute immediately.

If a market order does not fully execute at placement it will remain as a limit order at the set price and remain active until the end of the trading day.

Market orders can only be placed during market hours (10:00 am - 4:10 pm AEST/AEDT). Learn more about the ASX trading hours here.

 

How is the price of a Market Order determined?

As mentioned above, when a market order is placed, this is entered as a limit order with a limit price at a slight percent (%) deviation above or below the share’s reference price (this is typically the last traded price) to have the best possibility of being immediately filled.

The table below lays out the % deviation from the reference price at which the limit order will be placed, should a market order be requested. While this will be the price at the time of entry, execution will still occur at the best available opposing price in the market.

Please note, there may be market circumstances (such as market volatility) in which the order may execute at the price determined with the calculation presented in this table, or may not execute at all if the share price exceeds the limit price.

 

An example of a market order:

• You’re looking to buy stock ABC on the ASX. The best resting bid for stock ABC is $100.00 while the best resting ask is $100.01. The stock last traded at $100.00.
• You place a market order to buy ABC. As per the above, this market order is entered as a limit order with a limit price of $100.25, which is a deviation of 0.25% above the reference price (or last traded price).
• In this instance, the order will be filled at $100.01 since this is the best available price. The limit order created simply specifies that you would pay no more than $100.25 for the stock, i.e. $100.25 would be the limit (maximum) you would pay for the stock, but you can still be filled for a lower price.
• Vice versa applies for market sell orders.

During periods of market volatility, it is possible that the last traded price moves beyond the price of your limit order. Under this circumstance, the limit order may either not execute at all, or execute at a later stage at the requested limit price, if the market prices return to that price level.

 

Stop Orders on Stake AUS

Stop orders can be used to limit losses or lock in profits when the price of a stock fluctuates.

A BUY stop order may be placed for a stop price above the reference price (typically the last traded price), while a SELL stop order – also known as stop loss – may be placed for a stop price below the reference price.

If your set stop price (otherwise known as a trigger price) is reached, Stake will place a limit order with a limit price at a small % deviation away from the requested stop price.

It is important to note that the stop price specified by you may not be reached and your order may expire or be cancelled before it executes. Even if your stop price is reached, there is no guarantee that it will be filled at the requested stop price, or that it will be filled at all.

The limit order will remain in the market until it is filled, cancelled, or expires at the end of the trading day.

The exchange, Stake or our broker-partner FinClear may be required to cancel your order due to circumstances including, but not limited to, corporate actions, market statuses or the price of your resting limit order becoming too far from the prevailing market price.

Learn more about potential reasons for failed orders here.

 

How is the price of a stop order calculated?

The table below lays out the % deviation from the stop price at which a limit order will be placed once triggered. While this will be the price at the time of entry, execution will still occur at the best available opposing price in the market. 

Please note, there may be market circumstances (such as market volatility) in which the order may execute at the price determined with the calculation presented in this table, or may not execute at all if the share price exceeds the limit price.

What are some considerations with Stop Orders?

Execution variability: While stop orders are intended to be filled at or near the stop price, execution cannot be guaranteed to occur at the specified stop price level. Market conditions, liquidity and price gaps can result in executions at different prices than intended, especially during periods of high volatility. In addition, execution immediately following the market opening auction may not occur, if a security opens at a price beyond the specified prices. 

False triggers from short-term market fluctuations: In some cases, stop orders can be triggered by short-term market fluctuations or intraday price volatility, resulting in premature selling. This can lead to missed opportunities if the market subsequently reverses and continues in the expected direction.

 

What are the different order types on Stake Wall St?

We offer three types of orders on Stake:  

• Limit
• Market 
• Stop

Limit orders on Stake Wall St

A limit order is an order to buy or sell a number of shares at a specific limit price. Limit orders only execute if an opposing order is priced at the limit price set by you or better. A buy limit order can only be executed at the limit price or lower. A sell limit order can only be executed at the limit price or higher.

A limit order is not guaranteed to execute. If the specified limit price is not immediately available in the market or not reached later, the limit order will not be executed. Rather, the order will remain in the market until it’s either partly or fully filled, or until it’s cancelled or expires.

There are two types of expiry instructions that can be provided: End of Day (EOD) and Good-Til-Cancelled (GTC). EOD Limit Orders will expire at the end of that trading day, if not executed prior. GTC Limit Orders (that are not cancelled or filled) are valid and remain active in market for your choice of either 30 or 90 days.

 

Market Orders on Stake Wall St

A market order is an order to buy or sell shares at the best market price available for the quantity of shares at the time the order is placed. Market orders generally prioritise successful order execution over Order Price, and are intended to execute immediately. Unlike Market Orders on Stake AUS, Stake Wall St Market Orders do not include a price limit.

Due to volatility and other factors, Market Orders are not guaranteed to execute at the better opposing price at the time you submit an order, and may not execute at all due to market conditions, including illiquidity, for example. You should monitor the status of your Market Orders. 

A Stake Wall St market order can be placed at any time, but it will only be executed when the market is open, unless you have enabled the extended hours offering in Stake Wall St. You can read more about extended hours here.

If you submit a market order for a whole share amount (i.e. 1 unit at market price), you may receive a fractional quantity that is just above or just below the whole unit share (i.e. receive 0.99 shares rather than 1 share). 

 

Are there order limits?

During market hours, Wall St Market Orders have a US$1,500,000 Order Limit (or up to 20,000 share units) per trade. Please note, Market Orders have a US$150,000 Order Limit per trade with Extended Hours enabled. 

 

Stop Orders on Stake Wall St

Stop Orders can be used to limit losses or lock in profits when the price of a stock fluctuates.

A BUY Stop Order may be placed for a stop price above the current market price, while a SELL Stop Order – also known as Stop Loss – may be placed for a stop price below the current market price.

If the stop price is reached (or passed), Stake’s Service Partner, DriveWealth, will place a Market Order that will execute as described immediately above (under “Market Orders on Wall St”).

 

What are some considerations with Stop Orders?

Execution variability: While Stop Orders are intended to be filled at or near the best opposing price present at the time the order is placed, execution cannot be guaranteed to occur at that price level. Market conditions, liquidity and price gaps can result in executions at different prices than intended, especially during periods of high volatility. In addition, execution immediately following the market opening auction may not occur if a security opens at a price beyond the specified prices.

“False” triggers from short-term market fluctuations: In some cases, Stop Orders can be triggered by short-term market fluctuations or intraday price volatility, resulting in premature selling. This can lead to missed opportunities if the market subsequently reverses and continues in the expected direction.

To learn more about Stop Orders, you can head to our Stake Academy blog post here. 

 

General Information

Please note, that the expiry instructions provided (i.e. End of Day (EOD) and Good-Til-Cancelled (GTC)) will indicate how long an order will remain active in the market until it’s either partly or fully filled, is cancelled or has expired.

Please be aware that when investing, your capital is at risk. As investments carry risk, before making any investment decision, please consider if the investment is right for you and seek appropriate taxation and legal advice. Please refer to our website for more information.