Help and Support

Advanced Orders

General

1. What are the Advanced Order types and order validities available on iOCBC?

Advanced Order types available in iOCBC include:

  • Limit Orders
  • Price Triggered Orders
    • Stop Orders
    • If-Touched Orders

iOCBC offers the following order validities:
  • Day Order
    A day order is valid only on the day the order is sent to exchange.  If it is not matched, it will be removed from the exchange at the end of the trading day.  
  • Good-Till-Date (GTD)
    A Good-Till-Date order will come with a date the order will expire, which could be up to a maximum of 30 days from the day the order is placed. It stays in the exchange until it is fully filled, specifically cancelled, or the instrument is de-listed or expired.
  • Fill or Kill (FOK)
    The order is matched in entire quantity or completely cancelled.  There is no partial fill. The order is not stored in the exchange. 
  • Fill and Kill (FAK)
    The order is matched with as much quantity as possible and the unmatched quantity is cancelled. The order is not stored in the exchange.

2. How do I apply for access to the various Advanced Order Types?

Limit Orders with Day and GTD validity are granted to all clients by default.
Currently, only Cash Account clients are allowed to place other Advanced Orders with Day and GTD validity.

Please contact your trading representative if you wish to gain access to the other Advanced Order types.


3. On which markets may I place Advanced Orders?

Advanced Orders are currently available on the SGX only.

4. Amend order

With the introduction of SGX Advanced Orders, you can now amend your SGX order by increasing or decreasing the price and/or quantity. This may result in a possible change in the priority of your order.

SGX Order Amendment Action

Order Priority

Decrease in Order Quantity

Priority of the order will be maintained

Increase in Order Quantity

Priority of the order will be lost

Increase/Decrease in Order Price

Priority of the order will be lost


Your modified order price will subject to a bid range validation check by the SGX.

These features are made available to all clients.



5. What are the types of Advanced Orders I can submit at different trading phases?

Order Types / Validities Pre-Open Open Pre-Close
 Limit Orders
 Fill-and-Kill (FAK)  √   √   √
 Fill-or-Kill (FOK)  ×    √  × 
 Day  √  √   √ 
 Good-Till-Date (GTD)   √  √   √ 
 Trigger Criteria
 Stop Orders   ×   √  × 
 If-Touched Orders    ×   √   × 



6. Are Advanced Orders available on iOCBC TradeMobile?

Currently, only Limit Orders with Day and GTD validity are available on iOCBC TradeMobile.


7. How do I access the new order types with various validities, and how do I submit the orders?

On the iOCBC order ticket, click on the “Advanced” button. Before you can access the Advanced Order’s ticket, you will need to read and accept the one-time disclaimers.






Limit Orders

1. What is a Limit Order?

Limit orders allows a buy or sell of a stock at a specified price or better.


2. How does a Limit Order works with the different validities?

  • Day limit order
    Any portion of the order that can immediately be matched is traded as soon as the order is entered. The rest of the unfilled order sits in the market until it is matched or it will be removed from the exchange at the end of the trading day.
  • Good-Till-Date (GTD) limit order
    Any portion of the order that can immediately be matched is traded as soon as the order is entered. The rest of the unfilled order sits in the market until it is fully filled, specifically cancelled, or the instrument is de-listed or expired.
    Good-Till-Date’s order will come with a date the order will expire, which could be up to a maximum of 30 days from the day the order is placed. 
    Example: If the day the order is placed is 1 April 2017 and the you want to keep the order in the market for 3 days, the order can rest in the market till the end of trading day on 3 April 2017 or be filled before that.
  • Fill-or-kill (FOK) limit order
    The whole order quantity which is entered into the market must be matched in full or the order will be cancelled.  The order is not stored in the exchange. 
    Example: A limit order to buy 20 lots of ABC shares at $1 will only be matched if there are at least 20 lots of ABC shares with best available ask of up to $1.  If there are fewer than 20 lots available, the entire buy order will be cancelled with no part being matched.
  • Fill-and-kill (FAK) limit order
    Any portion of the order that can immediately be matched is traded as soon as the order is entered into the market. The rest of the unfilled order will be cancelled.  The order is not stored in the exchange. 
    Example: A limit order to buy 20 lots of ABC shares at $1 will have a partial match of 8 lots if there are only 8 lots of ABC shares with best available ask of up to $1 in the order book.  The buy order for the remaining unmatched 12 lots will be cancelled.

Price Triggered Orders

1. What is a Price Triggered Order (PTO)?

It is an instruction to buy or sell an instrument when the trigger price condition is reached. Once the price meets the condition that was set up, the PTO will be converted to an active tradable order. It is not visible to the market before it is converted to the specific order.
There is no long dated PTO as any PTO not activated by the end of the trading day will be automatically deleted from the system.

PTOs can only be entered, modified, cancelled and triggered during the Open trading phase. PTOs can be entered with any order type and validity for the to-be-triggered order.  However, validation of the allowable order type and validity for the to-be-triggered order will only be done upon activation of the order.

The current types of PTOs available are Stop Orders and If-Touched Orders.

Stop Orders

1. What is a Stop Order?

The order will be converted into an actual order, once condition (stop price) is met. This order helps an investor to minimise their loss.

2. How does a Stop Limit Order work?

Sell Stop Limit (for long position)
An investor has a long position of 100 shares of ABC stock bought at $5, and he wants to limit his loss to $100. The current last done price of ABC stock is $4.40. He would place a stop limit order to sell with a stop price at $4.20 and the limit price at $4.00.
In this case, the stop price is placed below last done price and the limit price is placed below the stop price, i.e.

Last Done Price > Stop Price > Limit Price

As long as the order can be filled at or above the limit price, it will be executed.

Buy Stop Limit (for short position)
An investor has a short position of 100 shares of ABC stock sold at $5, and he wants to limit his loss to $100. The current last done price of ABC stock is $5.40. He would place a stop limit order to buy back the shares with a stop price at $5.60 and the limit order price at $6.00.
In this case, the stop price is placed above the last done price and the limit price is placed above the stop price, i.e.

Limit Price > Stop Price > Last Done Price

3. What are the risks associated with a Stop Order?

  • Stop price can be triggered by a short term fluctuation in a stock’s price. 
  • For stop market orders, once the stop price is reached, the stop order will be converted into a market order. The transacted price can be different from the stop price since stock prices can change rapidly. 
  • If an investor wants to avoid the risk of a stop market order, the investor can choose to place a stop limit order. However, there will be no guarantee that the order will be filled in the event the price gaps through the limit price.

If-Touched Orders

1. What is an If-Touched Order?

The order will be converted into an actual order, once the condition (trigger price) is met. This helps an investor to maximise the profit gain without having to constantly monitor the market movement. It can also be used to create new positions in anticipation of a particular reversing trend.

2. What is the difference between a Stop Order and a If-Touched Order?

The difference between a stop order and an If-Touched order is that a stop order is typically used as a loss-limiting mechanism in respect of open positions, while an If-Touched order is used to create new positions in anticipation of a particular reversing trend.  In a falling market, an investor may want to enter the market at a favourable price should the market rebound.  Similarly, in a rising market, an investor may want to enter into a short position should the price begin to fall.


3. How does a Limit-If-Touched work?

ABC shares are currently trading at $2.60.  An investor wants to open a long position to buy 10 lots of ABC shares only when ABC shares falls back to $2.50.  However, he also wants to buy at a better price than $2.50, for instance $2.40.  In this case, the investor can enter a limit-If-Touched buy order with an order trigger price of $2.50 and a limit price of $2.40. 

During the day, if the price of ABC shares starts falling from $2.60 and reaches $2.50, the limit-If-Touched buy order is converted into a limit buy order for 10 lots of ABC shares at $2.40.  The buy limit order will only be executed at $2.40 or better price.  If the market price never goes down to $2.40 or better, the order will not be executed.

4. What are the risks associated with an If-Touched Order?
 

  • Trigger price can be triggered by a short term fluctuation in a stock’s price
  • For If-Touched market orders, once the trigger price is reached, the order will be converted into a market order. The transacted price can be different from the intended price since stock prices can change rapidly
  • If an investor wants to avoid the risk of an If-Touched market order, the investor can choose to place an If-Touched limit order. But the remaining unfilled limit order may not get processed if the price goes beyond the limit price. There is no guarantee that the order will be filled in the event the price gaps through the limit price.