Order Types

Order Types in POEMS

POEMS stands for Phillip Online Electronic Mart System.

It is Phillip Securities' trading platform which allows investors to trade various assets, including Equities, Bonds, CFD, DLC, and Unit Trusts.

Limit Order

A limit order is an instruction to buy or sell an instrument at a specified price or a better price.

For example, the current price of Singtel is Bid: $3.27, Ask: $3.28. 

Scenario 1: Key in $3.28 to buy, order will be done at $3.28 which is the current ask price. 

Scenario 2: Key in $3.30 to buy, order will be done at $3.28, because the current ask price is a better price than $3.30.

Scenario 3: Key in $3.25 to buy, order will be in the queue.

Stop Limit Order

A stop limit order is a conditional instruction to buy at a specified price only after a higher price is touched, or sell at a specified price only after a lower price is touched. In other words, a stop limit order executes the trade at a "worse" price.

It is typically used to mitigate risks by placing a stop loss in case the price moves against you. Please note that you should have bought the shares (1st order) before you place a stop loss (2nd order).

For example, the current price of Genting is Bid: $0.895, Ask: $0.900, and you have a long position. You want to sell when the price drops to $0.88.

Scenario 1: Key in $0.88 trigger price and $0.88 limit price to sell, trigger by "last done" selected. When there is a trade done in the market at $0.88, then an order will be placed to sell at limit price $0.88. The shares will only be sold at $0.88.

Scenario 2: Key in $0.88 trigger price and $0.87 limit price to sell, trigger by "last done" selected. When there is a trade done in the market at $0.88, an order will be placed to sell at limit price $0.87. If the bid price at that point in time is better than $0.87, it will be done at the better price.

Scenario 3: Key in $0.88 trigger price and $0.92 limit price to sell. trade will be triggered but not done because the instruction was to sell at $0.92, which is higher than current bid price. This order will fail as a stop loss.

Scenario 4: Key in $0.92 trigger price and $0.93 trigger price to sell, trade will be rejected because if the intention is to sell at a better price, the first order type "limit order" should be used instead. 

One Cancels Other (OCO) - CFD only

This is a combination of order type 1 and order type 2. After you had bought the shares (1st order), an OCO order (2nd order) can be used to take profit if the price moves up, or cut loss when the price goes down.

When the take profit is triggered, the stop loss will be canceled, and vice versa. 

This order is only available for CFD (Contract for Difference) trades.

All posts and charts are for educational and illustration purposes only