MF Global

Limit order

Entering a position:

When taking a long CFD position a limit order (Buy Limit) can be used to enter the market at a lower price than the current prevailing price. Using a limit in this instance would be to enter the market when you believe the share price has reached the low point in its trading range and will then begin to rise.

When taking a short CFD position a limit order (Sell Limit) can be used to enter the market at a higher price than the current prevailing price. Using a limit in this instance would be to enter the market when you believe the share price has reached the high point in its trading range and will then begin to fall.

Exiting a position:

When exiting a long CFD position a limit order (Sell Limit) can be used to set a take profit target on the position at a price higher than the current prevailing price.

When exiting a short CFD position a limit order (Buy Limit) can be used to set a take profit target on the position at a price lower than the current prevailing price.

Stop order

Entering a position:

When taking a long CFD position a stop order (Buy Stop) can be used to enter the market at a higher price than the current prevailing price. Using a stop in this instance would be to enter the market when you believe the share price has moved through a break out point in its trading range and will then continue to rise.

When taking a short CFD position a stop order (Sell Stop) can be used to enter the market at a lower price than the current prevailing price. Using a stop in this instance would be to enter the market when you believe the share price has moved through a resistance point in its trading range and will then continue to fall.

Exiting a position:

When exiting a long CFD position a stop order (Sell Stop) can be used to set a stop loss target on the position at a price lower than the current prevailing price.

When exiting a short CFD position a stop order (Buy Stop) can be used to set a stop loss target on the position at a price higher than the current prevailing price.

Contingent

An order that is contingent on a specific condition taking place. An if "this" happens, do "this". Contingent Orders are often used when placing Stop Entry and Stop Loss orders.  (see Stop orders).

Good-Till-Cancelled (GTC)

The length of time or duration that a Limit or Stop order will remain active in the system. GTC will continue to be active until triggered by the market or cancelled. (See ASX trading rules)

Good For-Day (GFD)

The length of time or duration that a Limit order will remain active in the system. GFD will be cancelled if it has not been triggered by the market or cancelled by the end of the trading day.