Forex Orders and Execution | Luminor

Supported Order Types

All market standard order types are available, i.e. Market, Limit and Stops.

Trailing Stops, where the Stop level moves in line with the market price, are supported for all Stop order types.

All Stop and Limit orders can be placed as either:

Market Orders

A Market Order, for a currency pair and amount within the streaming liquidity, is treated in the same way as if you are requesting to trade FX spot directly from a Trading Module (i.e. 'Trade on Quote') with the exception that a Market order will never be rejected (but therefore can result in a slippage). 

Market Orders are always filled at the current available price for the given amount.

Limit Orders

Limit orders are used to take profit or to enter the market at a certain price level:

Limit orders are generally filled at limit price. However, they may be filled at a better price during larger market gaps, for instance during the market opening period (Monday, 05:00 Sydney time) or during news events. Limit orders are never filled at a price worse than the original limit price.

Stop Orders

Stop Orders are typically used to limit losses at a certain price level. All Stop orders are triggered on the opposite side of the spread. These orders are typically filled at the stop level adjusted for the spread at the time.

Stop Orders are filled on transparent prices and the majority of orders are filled at the expected level set by the client.

A stop order placed to Buy is treated as a Stop if Bid. A stop order placed to Sell is treated as a Stop if Offer. Stop if Bid orders are typically used to limit losses on short positions. Stop if Offered orders are typically used to limit losses on long positions.

This is to prevent orders from being triggered just because of a temporary large spread (maybe for a split of a second) as opposed to actual buyers and sellers being present in the market.

Order management system has certain client protection mechanisms in place that ensures that the vast majority of orders are filled without any slippage. 

Automatic Order fill

The vast majority of FX orders placed with Luminor Trade are filled automatically without any manual intervention from the dealing desk.

For very large orders, during very volatile market conditions (for example during release of key economic figures) and in certain non-streaming currency pairs, manual review from the dealing desk is performed.

Manual Order fill

Typically, only a very small proportion of orders placed require manual intervention. These orders are either too large in size for automatic execution for that particular currency pair, in an illiquid currency pair without streaming price or it is  such that there are high volatile and/or illiquid market conditions.

During illiquid market conditions there are fewer market participants and thus dealers will need to check the price and also that the desired trade amount is actually available in the market. For some currency pairs, all orders might be filled manually. This could be due to very low trading volumes / liquidity in a particular pair.​