A stop order is an instruction to submit a buy or sell market order if and when the client-specified stop price is hit. A stop order is not guaranteed a specific execution price and may execute significantly away from its stop price.
● A sell stop order must be entered below the current market price to stop the loss on a long position or protect its profit.
● A buy stop order must be entered above the current market price to stop the loss on a short position or protect its profit.
1. Examples
● Buy stop order
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, a market order will be submitted automatically to the clearing broker and filled at the market price.
● Sell stop order
Assuming you hold stock XYZ with a cost price of 10. To prevent the stock from falling 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.
2. Order time
Clients can place orders at any time via the app.
3. Time-in-force
Clients can set the order's Time-in-force. If the order is not filled in full, 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 update to "failed," and the system will not continue to place the order.
4. Trigger time
If the order reaches the trigger condition during the preset trading period, the system will automatically submit the order to the clearing broker. The stop order will not be triggered if the trigger condition is met outside the preset trading period.
5. Notes
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.
5.2 After the stop order is triggered, the system will place a market order automatically as soon as the stop price is hit. However, there is no guarantee that the order will be filled. If the order is not filled during the Time-in-force, it will be cancelled automatically by the system.
5.3 After the stop order is triggered, whether it is filled or not, the trigger conditions will not be effective again. Please place a new order if necessary.
5.4 After the stop order is triggered, the system will place a market order. For clients' convenience, the order details will be displayed in the original stop order.
5.5 After the stop order is triggered, the system will submit the order only when the client has enough maximum buying power on the account, and financing may be applied.
5.6 Orders cannot be executed in multiple directions at the same time. If the order quantity is greater than the current position, the order will not be executed. For example, a buy and a buyback cannot be executed simultaneously; the same applies to a sell and a short sale.
5.7 The stop order will only be triggered during the regular trading hours.
5.8 If short selling of the underlying asset is supported, clients can short sell the underlying. If the account does not hold any long position when the order is triggered, short selling of the underlying will be executed.
5.9 Advanced orders are simulated by FUTU based on the basic orders and are irrelevant to Exchanges' advanced orders. Please refer to the actual order page for more details.
5.10 The system will use a specific quote data source as the quote price monitoring standard, for example, the U.S. stock is based on UTP quotes for price monitoring, the performance of Basic quotes may be different from UTP quote.
Disclaimer
Advanced orders are an order type developed by FUTU for clients' convenience. Meanwhile, FUTU tries to guarantee the execution of such orders. However, please be aware that the execution might be interrupted by poor network connections, server errors, etc. FUTU shall not be responsible or liable for any loss incurred.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.