Whenever a pending order is set up, it is required that the desired price is set at a minimum distance from the current price. This distance is known as the stop level, and it is important to follow to successfully set pending orders as well as set take profit and stop loss.
Stop levels by pending order:
The stop-level requirements are based on the type of pending order set.
Pending order type | Stop level requirement |
Buy Limit | below current ask at -1 point |
Sell Limit | above current bid at +1 point |
Buy stop | above current ask at +1 point |
Sell stop | below current bid at -1 point |
Aside from the stop level requirements, there are some important rules to consider:
Pending orders where the take profit and/or stop level is the same as the current price cannot be set.
Buy stop and sell stop cannot be set within the spread due to limitations inherent in the trading terminal.
Stop loss cannot be set within the spread.
Take profit can be set within the spread.