A stop order waits for a price condition before sending a trading order. This article translates the saved transcript for a Kuk’s Chart Analysis video and compares the order mechanics with TFEX educational materials. The video examples illustrate how to pair a trigger with an order; they are not trading signals or recommended prices.
How a stop order works
The user sets a trigger price and the order to send when the condition is met. In TFEX examples, the condition may be that the latest price (Last) is greater than or equal to a level, or less than or equal to a level. When the condition is met, the platform sends the selected order type, such as Limit, Market Price (MP), or Market-to-Limit (MP-MTL), subject to the platform’s available options.
A stop order sends an order after the specified condition is met. It does not execute before the trigger and does not guarantee a fill at the trigger price.
Four cases demonstrated in the source video
- Open a long position after price rises to a level: use a Last greater-than-or-equal-to trigger, followed by a Long Open order.
- Open a short position after price falls to a level: use a Last less-than-or-equal-to trigger, followed by a Short Open order.
- Close a long position after a downward move: if a long position is already open, the example uses Short Close when Last reaches the trigger.
- Close a short position after an upward move: if a short position is already open, the example uses Long Close when Last reaches the trigger.
The video discusses allowing some price room in the order placed after the trigger, in case the market moves past the set level. The appropriate tolerance depends on the trader and the product. This article does not set a spread or trigger price because costs and execution conditions vary with the product, liquidity and broker platform.
Checks before confirming an order
- Choose the intended product and contract series.
- Confirm whether the order opens or closes a position and whether Long or Short matches the current position.
- Check the trigger direction (Last ≥ or Last ≤) and the entered price.
- Confirm the number of contracts and the order type that will be sent after the trigger, such as Limit, MP or MP-MTL.
- Check trigger validity, order duration, and the platform’s and broker’s conditions.
- Review the order summary before confirming, then check the result after submission.
Menu names, limitations and setup details vary by platform. TFEX materials describe condition-order types and examples through Streaming; use the current manual for the platform you use.
Execution limitations
When prices move quickly, the market may pass the trigger before the order is filled. An MP order can execute across several price levels depending on liquidity. A Limit order may not fill if no counterparty is available at the specified price. TFEX warns that low liquidity can cause execution prices to differ from expectations. A stop order sends an order based on a condition; it does not guarantee a price or a fixed maximum loss.
This information explains order types and setup checks only. It is not a recommendation to open or close any contract. Investors should assess product choice, position size and acceptable risk, or consult an appropriately authorized provider.
Sources and scope
This article is based on a saved 5,930-character transcript and TFEX educational materials. The transcript has not been checked against the video’s audio and may contain transcription errors; its completeness has not been confirmed.
The referenced source video remains available through the video and channel links above.