What are conditional orders?

Conditional orders are orders which are not immediately executed to the market, because the quote price has to reach a certain value before the order is triggered.

What are conditional orders?

Conditional orders are orders which are not immediately executed to the market, because the quote price has to reach a certain value before the order is triggered.

At Darwinex, the conditional order are pending until the DARWIN reaches a certain quote price, in which case the order is automatically executed.

We can distinguish four types of conditional orders.

1. Buy Limit

A Buy Limit order is to buy a DARWIN at a quote price lower than what it is right now. This option is used by investors who want to make the most of a fall in a DARWIN in order to buy ''cheap''.

2. Buy Stop

A Buy Stop order is to an order to buy at a higher price, in other words it is used to buy a DARWIN at a quote price higher than what it is right now. This order is used by investors who want to make the most of the momentum of a specific DARWIN.

3. Take Profit

A Take Profit order is to sell a DARWIN when the quote price is higher than what it is right now.

4. Stop Loss

A Stop Loss order is used to sell a DARWIN when the quote price is lower than what it is right now.

Where to place conditional orders

Conditional orders can be placed only from the web platform. The mobile app "Darwinex for Investors" allows placing market orders only.

Place a Buy Limit or Buy Stop order

To set up a Buy Limit or Buy Stop order, click on the ''Trade'' button of any DARWIN and:

  1. Choose Buy Limit or Buy Stop
  2. Enter Amount and Quote Price
  3. Confirm the order
choose-order-type

The conditional order will appear as a pending order in the Investment section. You can view, edit, or delete pending orders any time.

pending-orders-en

Place Take Profit (TP) and Stop Loss (SL) orders

You can place TP and SL orders when you buy the DARWIN and also afterwards.

When buying the DARWIN

If you want to place a SL or TP with a market order, a Buy Stop or a Buy Limit, click on ''Add conditional order''. Then place the relevant SL and/or TP.

add-tp-sl-when-buying

Place TP / SL on open investments

    You can also set up a Stop Loss or Take Profit order on open investments. To do so, go to the "Investment" section, click on the ''Invested DARWINs'' subsection and then click on the ''+'' symbol to the right of the invested DARWIN.

    Open investments

    Change TP / SL of open investments

    TP / SL level of open investments can be edited from the "Invested DARWINs" section.

    Change SL and TP of open investments

    What happens when conditional orders get triggered

    When conditional orders get triggered, investors receive an email notification confirming whether the order could get executed or not.

    Buy limit and Buy stop orders don’t block money from your available equity, so if the order gets triggered and there’s not enough available equity for it, the order won’t get executed.

    Candle charts to check whether the quote hit a certain level or not

    In order to check whether a DARWIN quote hit a certain level or not, investors can consult our candle charts for DARWINs.

    Limits in conditional orders for DARWINs

    The limits are as follows:

    • 20 conditional orders per type and DARWIN (20x Stop Loss, 20x Buy Stop, 20x Buy Limit, 20x Take Profit)
    • 200 conditional orders per investment portfolio

    Example

    Despite our risk manager controlling investors' leverage, by setting up a Stop Loss the investor can avoid suffering losses greater than those they can bear.

    A maximum 6.5% monthly VaR implies that, in 1 our of every 20 months, the expected minimum loss would be 6.5% or MORE. A Stop Loss can help us to avoid some ''statiscally unexpected surprises''.

    SL case study

    Tips

    1. Don't set Stop Losses too tight. If you decide to have excessively tight Stop Losses, you run the risk of the SL being triggered by the slightest movement of a DARWIN against you, only to have the DARWIN return to its previous position. Therefore, it's not worthwhile placing the SL too close to the current quote price as this could result in the accumulation of many little losses, which can be harmful for your account's results.
    2. Plan ahead when to enter and exit the market. The use of conditional orders means the investor does not have to be checking the quote price. They are not only useful for reducing the risk but they can also be used to buy a DARWIN at a quote price better than what it currently is, or to take profit once a certain objective has been reached.

    Do you want to learn more?

    If you want to learn more about conditional orders, we recommend watching the following webinar recording.