Sometimes in volatile, fast-moving markets there can be slippage or gaps between the price on the screen and the price of execution. Boundary orders allow you to specify a range, or 'boundary price', that you are willing to accept in terms of slippage, ensuring your trade is executed.
The video explains how to use order boundaries when trading CFDs trading on Next Gen platform, a feature designed to give traders more control over their trade execution.
Automated execution ensures the trade is executed at the next available price, even during volatile market conditions. This feature works well for most traders, however, some traders may require a more specific market order price to align with their trading strategy.
Boundary orders provide greater control by ensuring the trade is only executed if the price is within a specific range of the screen price. This feature helps maintain more precise control over their entry points, ensuring that trades are executed within their preferred price range.
How to set a boundary order
To set a boundary order, enable the option in your order settings, and a new icon will appear to allow you to add a boundary to your order:
This allows traders to specify the maximum distance between the screen price and the execution price they are willing to accept.
If the execution price is too far from the screen price (e.g., more than 0.1 points away), the trade will be rejected.
A boundary order can be set to 0 points to ensure the execution price matches the exact screen price. Boundary orders can also be used with stop-entry market orders, providing even more precision.
In the pending orders section, orders with boundaries will be marked with a "B" symbol to indicate that the boundary is active. If the execution price is beyond the set boundary, the trade will not be executed.
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