A stop order is an instruction to submit a buy or sell market order when the user-specified stop price is hit. A stop order does not guarantee a specific execution price and may execute significantly away from its stop price.
Clients need to follow the "buy high and sell low" rule when placing a stop order. The buy stop price needs to be higher than the current market price, and the sell trigger price needs to be lower than the current market price.
A sell stop order is always placed below the current market price and is typically used to limit a loss or protect a profit on a long position.
A buy stop order is always placed above the current market price and is typically used to limit a loss or protect a profit on a short sale.
Assuming stock XYZ has a current price of 10, you submit a buy stop order with a stop price of 15. If XYZ's market price rises to 15 or higher, a market order will be submitted automatically to the clearing broker and filled at the market price (it does not guarantee a specific execution price).
Assuming you hold stock XYZ with a cost price of 10. In case the stock price falls sharply in the future, you submit a sell stop order with a stop price of 15 when the market price is 20. If XYZ's market price falls to 15 or lower, a market order will be submitted automatically to the clearing broker and filled at the market price (it does not guarantee a specific execution price).
Clients can place stop orders at any time via the app.
Clients can set a stop order's time in force. If the order is not fully filled upon expiration, the unfilled portion will be cancelled automatically by the system.
If the order fails to be executed due to risk management or other reasons, the order status will become "failed" and the system will not continue to place the order.
If the trigger condition is met during the preset trading session, the stop order will be triggered, and the system will automatically submit a preset order to the clearing broker.
The order will not be triggered if the trigger condition is met outside the preset trading session.
After a stop order is triggered, it is not guaranteed to be submitted successfully. It may be rejected due to reasons such as insufficient buying power or positions.
After a stop order is triggered, the system will place a market order automatically. However, the order is not guaranteed to be filled. If it is not filled upon expiration, it will be cancelled automatically by the system.
After a stop order is triggered, the condition cannot be triggered again, regardless of whether the order is filled or remains unfilled. You will need to place a new order.
After a stop order is triggered, the system will place a market order. For your convenience, the order details will be displayed in the original stop order.
After a stop order is triggered, the system will not submit it unless there is enough buying power or positions in your account. Margin may be used for the transaction.
Stop orders cannot be executed in multiple directions at the same time. You cannot sell and short sell, or buy and buy back, the same stock at the same time through a stop order. Suppose you hold a long position in a stock and place a sell order for the stock. If the order quantity is greater than the position quantity when the order is triggered, the order will not be executed.
Stop orders will only be triggered during regular trading hours.
If a stock supports short selling, you can select short selling when placing an order. If you do not hold any long position in the stock when the order is triggered, short selling will be executed.
Our advanced orders are simulated by FUTU HK based on basic orders and are irrelevant to the exchanges' advanced orders. Please refer to the actual order page for more details.
Disclaimer
FUTU HK offers advanced orders as an easy online trading option for its customers. Although we strive to ensure a stable service, we cannot promise it will be perfect. We are not liable for any financial losses or damages if an advanced order fails because of issues like network problems, server errors, or external factors.