New Orders

Placing a trade is great if you want to open a long or short position at the current price.

However there may be times when the price you would be willing to open a position at is different from the current price.

In that case you can either:

• Sit at your computer, watching and waiting for the price to change, or
• Use a new order to place a trade for you

New Orders

• A new order is used to open a position if, and only if, the price reaches a level you choose.
• You also decide the ‘Good Until’ date and time, which determine how long the order remains valid for.
• If the paddypowertrader quote reaches the level you choose before the Good Until date (and during paddypowertrader market hours), paddypowertrader will place the trade for you.
• However if the price doesn't reach the level you chose before the Good Until date and time, paddypowertrader will cancel the order (although you can extend the Good Until date as often as you like).
• Naturally you can cancel a new order at any time – as long as the paddypowertrader price hasn't reached the level you chose.

New Order

• Now that our new ‘buy’ order is set, if the paddypowertrader ask price falls to €5.50 at any point over the next month it will automatically be executed and our long position will be opened.
• However if the paddypowertrader ask price does not fall to €5.50 before our Good Until date paddypowertrader will not execute the trade and our new ‘buy’ order will be cancelled.
• Of course a new order can also be used to open a short position. In this case it would be called a new ‘sell’ order

Stop Loss Orders

Stop Loss orders are a particular type of new order which we discussed in Tutorial Two.
The key points are:

• Stop Loss orders help us to put a limit on our likely maximum potential loss – but don’t forget they aren’t guaranteed. Click here for more details
• Every time we place a new bet paddypowertrader will automatically place a Stop Loss for us
• We can change the level of this Stop Loss whenever we like – assuming we have sufficient ‘Trading Resources’ in our account. To review the section on trading resources click here
• A Stop Loss order remains in place until executed or changed by us – the paddypowertrader computers will never change a Stop Loss without our instruction to do so

Advanced Order Types

There is a final order type called a One Cancels Other (OCO) order

As OCO orders are quite advanced we won’t be spending much time on them here. However, in short, they can be used to place both a new ‘buy’ order and a new ‘sell’ order at the same time.

Which of these orders will be executed first depends on whether the price rises or falls – however as soon as one order is executed the remaining order is cancelled.

Email Confirmations

Some people like to use email as their main method of keeping records. So paddypowertrader will send confirmatory emails if:

• we place a trade and buy or sell a bet
• we alter a Stop Loss order
• we create or alter a New Order a Limit Order or an If Done order
• any one of our chosen levels in our New, Limit Profit or If Done orders are hit and a bet is bought or sold for us

To Sum Up

• The simplest way to buy or sell a bet is to place a trader. Doing this will buy or sell a bet at the current market price.
• If you would only be willing to trade at a better price than the current one you can use an order. This is simply an instruction you send paddypowertrader to buy or sell a bet if the prices reaches a level chosen by you.
• Paddypowertrader offers you several order types:
• New Orders are an instruction to open a new position by buying or selling a bet if the price reaches a certain point.
• Stop Loss Orders help you to put a limit on your likely maximum potential loss. They do this by closing your position if the price moves against you and reaches a certain point. However Stop Loss Orders are not guaranteed.
• Limit Profit Orders are an instruction to close your bet if the price moves in your favour and reaches a certain point. Like Stop Losses, Limit Profit Orders are not guaranteed.
• Orders can be combined using If Done or Conitional Orders.

Congratulations!

You have now completed tutorial four.