Orders and Positions

  • Q1) What is the difference between a Trade and an Order?

    A Trade is an instruction to open or close a position immediately, whereas an Order is an instruction to do so at some point in the future if Our Price reaches a pre-specified level. There are two types of Orders available with us, Stop and Limit orders.

    Q2) How do I place a Trade/Order?

    You are able to place Trades/Orders via any of our Trading Platforms, if you would like a step-by-step guide, please refer to our Platform Tutorials. These are short videos that walk you through a number of key areas of our Online Trading Platform. 

    You can also place Trades/Orders over the telephone by calling our Client Management team; however the minimum trade size for phone trades may be higher.

    Q3) What is a Stop Order?

    A Stop Order is an instruction to place a Trade at a specified price that is less advantageous to you than the level at the time of placing the order. This will only be executed should ‘Our Price’ reach the level of your order.

    For example, if the UK 100 is at 5500, you may choose to leave a Stop Order to sell 100 CFDs if the level falls to 5400. Therefore if ‘Our Price’ falls by 100 points we will automatically open the above trade for you.

    Please note that Orders may be subject to slippage, see Question 7 for more details.

    Further information is available in our Learn to Trade Guide.

    Q4) What is a linked Stop Loss Order?

    A linked Stop Loss is a Stop Order that is put in place to limit the risk of a market moving against a current open position. If the open position is closed, either by an opposing trade or order activation, then the linked Stop Loss will be cancelled.

    For example, if you enter into a long UK 100 Trade at 5500, you may choose to leave a linked Stop Loss Order at 5400. Therefore if ‘Our Price’ falls by 100 points we will automatically close your trade, helping you to avoid any further losses.

    Please note that Orders may be subject to slippage, see Question 7 for more details.

    Q5) What is a Limit Order?

    A Limit Order is an instruction to place a Trade at a specified price that is more advantageous to you than the level at the time of placing the order. This will only be executed should ‘Our Price’ reach the level of your order.

    For example, if the UK 100 is at 5500, you may choose to leave a Limit Order to sell 100 CFDs if the level reaches 5600. Therefore if ‘Our Price’ rises by 100 points we will automatically open this Trade for you.

    Please note that Orders may be subject to slippage, see Question 7 for more details.

    Further information is available in our Learn to Trade Guide.

    Q6) What is a Linked Limit Order?

    A Linked Limit is a Limit Order that is linked to an Open Position on your account. If that Open Position is closed, either by an opposing trade or by an Order Activation, then the Linked Limit will be cancelled. Please refer to the Learn to Trade Guide for more details.

    For example, if you enter into a long UK 100 Trade at 5500, you may choose to leave a linked Limit Order at 5600. Therefore if ‘Our Price’ rises by 100 points we will automatically close your trade, helping you lock-in your profit and protect it in case ‘Our Price’ were to fall again.

    Please note that Orders may be subject to slippage, see Question 7 for more details.

    Q7) What is slippage?

    Slippage can occur if markets ‘gap’, this is when prices either jump or fall from one price to another without trading at every increment in between. This can happen when the market adjusts to news; for example if a company announces worse than expected profits then its share price may fall from 100p to 90p, without trading at 99p, 98p etc. If this were to occur then we would be unable to execute orders at prices where the underlying market did not trade, orders would be filled at the next available price.

    Q8) What is a Guaranteed Stop Loss Order?

    Guaranteed Stop Loss Orders are only available on certain markets and can be used as protection against possible slippage. They ensure that the Order will be executed at the exact level that you specify, regardless of whether the market gaps. A premium is paid for this, which can be thought of as insurance against gapping.

    Q9) How do I place a Guaranteed Stop Loss Order?

    You can leave a Guaranteed Order when you open a Trade either online or by phone, you may also add a Guaranteed Order to an existing trade provided it is within trading hours. For Orders placed via the Trading Platform, you need to select the ‘Guaranteed’ box next to the Stop Loss value. Please be advised that you can only place/amend Guaranteed Orders within Market Hours, and minimum distances apply.

    Unfortunately, Guaranteed Stop Losses are not available for all markets. To find out if a particular market offers Guaranteed Stop Losses, and the premium charged, please refer to its Market Information sheet on the Trading Platform.

    Q10) What is a trailing stop loss order?

    A trailing stop loss order is a powerful risk management tool, helping you to minimise potential losses, without setting a limit on your potential gains.

    A trailing stop is created by setting a stop order that ‘trails’ your position by a specific number of points. If your trade moves in your favour, the trailing stop moves with the market, executing only when the market moves against you by the set number of points.

    The trailing stop is more flexible than a fixed stop loss, since it automatically tracks the market’s price direction and does not have to be manually reset, as you would have to with a fixed stop loss.

    Q11) How do I Amend/Cancel Orders?

    You can Amend or Cancel Orders by clicking on the ‘Amend Stop & Limit’ button, which can be found in the ‘Active Orders’ tab on the Trading Platform.

    Q12) Am I able to amend Orders at any time?

    Yes, you can amend Orders on your positions at any time, including out-of-hours trading. Guaranteed Orders are the only exception to this and can be amended only during market hours.

    Q13) Are Orders active even when the markets are closed?

    Orders are only monitored and executed during City Index trading hours (and not necessarily during the underlying market trading hours). We will execute any triggered Orders at the first available price in our opening hours for cases where the markets continue to trade outside of City Index hours. Therefore, this may be different to the original Order level if the market has gapped.

    Q14) Why was my Order rejected after it triggered?

    Your order may have been rejected due to a number of reasons, including insufficient funds. Orders are subject to sufficient funds being in the account at the time the Order was triggered, and not when the Order was placed.

    Q15) How long can I hold my positions for? 

    CFDs: There is no expiry for a CFD trade (unless it is a CFD future) and you may hold it for an unlimited period, as long as you have enough funds in your account to cover margin. Please remember that you will, however, be charged a daily overnight financing fee. 

    Spread bets: Through our Daily Funded Trades (DFTs) you are provided a long term settlement date and your P&L is only calculated when you either close or partially close your trade. 

    Q16) Can I roll my position, and how do I do this? 

    Yes you can. How to do this depends on which product you are trading. 

    Spread bet Futures: Simply select the ‘Autoroll’ button via the Open Positions tab on the Trading Platform. This will then roll your position into the next contract on expiry. 

    CFD Futures: You cannot roll CFD futures via the Internet. Please call Client Management on 0845 355 0801 to do so.

    Q17) Why has my position been closed?

    Positions may be automatically closed out either due to an attached order triggering or due to your Margin falling below the Margin Close Out Level. Please see the Margin and Leverage section for more information about our Margin Policy.

    Q18) What do I do if I have a trade query?

    You can raise trade queries/disputes by calling our Client Management Team.

    Q19) Do corporate actions affect my account?

    Yes, your account is subject to any corporate actions occurring in the underlying market.

    Q20) Do I receive dividends in the same way as if I was holding shares?

    CFDs are subject to dividend adjustments intended to replicate the net dividend payment applicable to the ordinary share. A dividend adjustment is credited to long positions and debited from short positions held at the close of business on the day before the ex-dividend date. Payment is then credited/debited to your account around the ex-dividend date. 

    Q21) Where can I find margin requirement, spreads and minimum stake sizes for markets?

    This information can be found by clicking on the Market Information icon for a specified market. These are located immediately to the right of the Trade and Order buttons on the Trading Platform.

    Q22) What is your minimum market cap for US/UK/Euro stocks that I can trade?

    There is no set minimum but we are reluctant to offer markets for stocks with a market cap of less than £50m and if you wish to short a market then the minimum market cap will be higher. Please contact Client Management if you wish to enquire about trading a market that we are not listing.

     

    Q23) Does the Daily Change indicator on the trading platform show the change on the day for each market?

    Our daily change indicator will reflect the movement of each market on that day. However, as many of our markets run outside of market hours, such as the FTSE 100 (UK 100), the daily change may not accurately reflect the daily change during underlying market hours. As such, our daily change indicator is an indication only. Please see bid and offer for tradable quotes.