Limit Orders

  • You can use our range of orders to reach your trading goals. At City Index, we offer Limit Orders alongside Stop Losses and this effectively enables you to manage both your downside and upside potential.

    Limit orders

    Limit Orders are used to lock in profits by closing a winning CFD trade once a market passes a trigger value set by you. This means that you are able to automatically close trades and cash in your gains if the market moves in the way you expect, helping you to reach your profit targets.

    Example: UK 100

    Let’s say you have bought 2 CFDs of the UK 100 at 5000, and have highlighted 5,200 as your profit target, a £400 gain (5200-5000 x 2 CFDs). You can use a limit order to ensure that should the UK 100 reach 5200, our systems automatically close out your trade at this level. Sure enough, the UK 100 rallies to 5200, and our systems automatically close your position out at 5200. Next time you log onto the platform, you will see your £400 profit already credited onto your cash balance.

    Using stop loss orders

    Our Stop Loss Orders are incredibly flexible and whilst they are mainly used by traders to stop losses, they can also be used to protect profits as well. All of our Orders can be moved as much or as little as you like, as long as they have not been triggered. As the market goes in your favour, you can move your stop loss in line with the market to cash in your profits. Many CFD traders use this strategy along with a Limit Order to put a minimum profit and maximum profit cap on their trades.

    Example: Wall Street

    Let’s say you have bought two CFDs of the Wall Street Index at 10100, expecting it to rise over the coming days. You set a Guaranteed Stop Loss at 9950 to ensure that your downside risk is protected and put a Limit Order at 10300 as a profit target. Sure enough, Morgan Stanley announces a solid set of earnings, which lifts the Wall Street Index to 10255.

    Seeing this move, you can now move your Guaranteed Stop Loss higher to 10150 to ensure that the minimum you can make from this trade would be $100 (10150-10100 x 2 CFDs). Remember, you still have your Limit Order set at 10300, meaning that should the Wall Street Index continue to rise and reach this level, your trade will automatically close at your profit goal. By moving your Guaranteed Stop Loss higher in line with the market rise, you have ensured that at the very minimum, you will make a $100 profit on this trade.


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