Market orders are created when an operator wants to open a position with the current market price. After the operator clicks on a price, the price needs to be confirmed before executing the operation. The money sent to the Dealing Desk will be the price displayed on the confirmation window when the operator agreed to the operation. CIBDer executes the operation in real time if the available price is the requested price or within a few pips. Once the order is executed, the open position instantly appears on the client’s trading platform.
If the market has moved and there is no price withina few pips of requested price, the dealing desk will send the customer a re-quote with the current market price. The customer can accept or reject the re-quotation. Orders will not take place at the new price without the customer’s prior consent. This guarantees that there will never be a slip on market orders. Slip is defined as the difference between the price approved by the customer and the price at which the order is actually executed.
In an attempt to decrease the incidence of re-quoting in volatil markets, and to help ensure effective market entry for higher jumps in market price, DIBDer has introduced a feature within the CIBDer Trader software, CIBDer Operator Range. The Trader’s Range option allows customers to automatically approve re-quotes within a selected range. For instance, if the range of the operator is set to 10, the re-quotes within ten price pips are processed without requiring the customer’s confirmation. Please note that because orders placed by operating systems are classified as market orders, they are subject to re-quoting according to processing market order procedures.
Conditional orders (stops, limits, and stop limits, input limits)
Conditional orders are triggered when the market price reaches the price specified in the order. When this happens, the customer’s initial order is activated, requesting it to fill the order with the specified price. Under normal market conditions, CIBDer respect the price specified in the conditional orders up to 100 mini batches or 10 standard batches. The larger orders and orders executed in extremely volatile markets, will run in the next available price, if the market price has passed. This is known to occur during the weekend when the Sunday opening price is sometimes significantly different from Friday’s close, and during major market moves.
Many derivatives representatives expand their market operations before a major move in the market, thus making it more difficult to enter. As CIBDer offer fixed brokerage operations, ensuring that you can always expect quality prices, we can limit the placement of new conditional orders at least 35 pips from current market price about 15 minutes before the announcement of major news. Under normal market conditions, you can place conditional orders only 5 pips of the market price.
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