A stop order instructs the system to place a buy or sell market order when the market price reaches the specified stop loss trigger price. It does not guarantee a specific execution price, and its execution price may be significantly different from its stop loss price set in the order.
When placing a stop order, you follow the "buy high and sell low" rule, and there need to be a certain relation between the stop loss trigger price and the market price. That is, the buy stop loss price needs to be higher than the current market price, and the sell stop loss price, lower than the current market price.
● A sell stop order is always placed at a price below the current market price and is usually used to limit the loss or protect the profit of a long position.
● A buy stop order is always placed at a price above the current market price and is usually used to limit the loss or protect the profit of a short position.
If you submit a buy stop order at a stop loss trigger price of 15 when the market price is 10, the order will automatically be submitted to the clearing broker as a market order when the current market price of the underlying security reaches 15 or more, and will be filled at the market price (the fill price is not guaranteed).
Suppose you hold a stock at a cost price of 10. To prevent the stock price from falling sharply in the future, when the market price is 20, you submits a sell stop order at a stop loss trigger price of 15. If the stock price drops to 15 or below, the sell stop order will be automatically submitted to the clearing broker as a market order and will be filled at the market price (the fill price is not guaranteed).
At any time in the app.
You can set the time in force of an order yourself. If the order is not fully filled within the entire period, it will be automatically cancelled by the system.
If an order fails due to risk control or other reasons during the execution process, it will be in the 「Failed」 status and the system will no longer submit it.
If the condition is triggered during the permitted trading session you set when placing an order, the order will be triggered and the system will automatically submit it to the clearing broker.
If the condition is triggered beyond the permitted trading session you set when placing an order, the order will not be triggered. The system will not start to judge if the condition is triggered until the permitted trading session you set begins.
5.1 Placement of the conditional order does not directly freeze the customer's buying power or position. It will be frozen only when the condition of the order is triggered. Please note that triggering of conditional order does not guarantee that the order will be successfully submitted to the upstream broker or the exchange. The conditional order will be failed to submit due to insufficient buying power or positions of the account at that time. If you place a conditional order and subsequently place a limit or market order for the same underlying security, the conditional order may fail to submit and execute due to insufficient positions as the underlying security may be tied up by the limit or market order.
5.2 After an order is triggered, there is no guarantee that the order will be filled. A stop order is automatically submitted as a market order by the system only when the system detects that the trigger price is reached; after being triggered, the order will be processed in the same logic as an ordinary order is processed. If unmatched, the order will be automatically cancelled after the time in force expires.
5.3 Once triggered, the condition will not take effect again regardless of whether the corresponding order is filled or not; if necessary, please place a new order.
5.4 After an order is triggered, the system will help to submit a market order. However, in order to facilitate your order management, the status and data of the order that is triggered and submitted will still be displayed in the original stop order.
5.5 After an order is triggered, the system will judge whether the order can be submitted to the clearing broker according to the maximum buying power in your account, and margin may be used.
5.6 An order cannot be executed in multiple directions at the same time. If the order quantity is higher than your position in the underlying security when the condition is triggered, the order will not be executed. That is, an order cannot buy and buy back at the same time, nor can it sell and short sell at the same time.
5.7 In the futures market, if you tap "Sell" to place an order, it will be allowed to short sell by default, and if you tap "Close" to place an order, it will not be allowed to short sell by default.
5.8 Advanced orders are simulated by Futu according to basic orders, and have nothing to do with the advanced order types provided by specific exchanges. Please refer to the corresponding order explanation page for specific order performance.