Stop order

A stop order is an instruction to submit a buy or sell market order if and when the client-specified stop price is hit. A stop order is not guaranteed a specific execution price and may execute significantly away from its stop price. 

● A sell stop order must be entered below the current market price to stop the loss on a long position or protect its profit.

● A buy stop order must be entered above the current market price to stop the loss on a short position or protect its profit.


1. Examples

● Buy stop order

Assuming stock XYZ has a current price of 10, you submit a buy stop order with a stop price of 15. If XYZ's market price rises to 15, a market order will be submitted automatically to the clearing broker and filled at the market price.

● Sell stop order

Assuming you hold stock XYZ with a cost price of 10. To prevent the stock from falling sharply in the future, you submit a sell stop order with a stop price of 15 when the market price is 20. If XYZ's market price falls to 15 or lower, a market order will be submitted automatically to the clearing broker and filled at the market price.


2.  Order time 

Clients can place orders at any time via the app.


3. Time-in-force      

Clients can set the order's Time-in-force. If the order is not filled in full, the unfilled portion will be cancelled automatically by the system. If the order fails to be executed due to risk management or other reasons, the order status will update to "failed," and the system will not continue to place the order.


4. Trigger time    

If the order reaches the trigger condition during the continuous trading session, the system will automatically submit the order to the clearing broker.

The stop order will not be triggered if the trigger condition is met outside the continuous trading session.


5.  Notes

5.1 Placement of the conditional order does not directly freeze the customer's buying power or position. It will be frozen only when the condition of the order is triggered. Please note that triggering of conditional order does not guarantee that the order will be successfully submitted to the upstream broker or the exchange. The conditional order will be failed to submit due to insufficient buying power or positions of the account at that time.

5.2 After the stop order is triggered, the system will place a market order automatically as soon as the stop price is hit. However, there is no guarantee that the order will be filled. If the order is not filled during the Time-in-force, it will be cancelled automatically by the system.

The market order notes are as follows.

(1) After you confirm the submission of a market order, Futu will submit it to the Hong Kong Stock Exchange at the five best bid or ask prices according to the buy or sell instruction.

(2) A market order may be divided into several small orders for execution, and each small order may be filled at a different price.

(3) If the number of placed orders is small, a market order may not be fully filled. The unfilled part will be automatically cancelled and, after being cancelled, will be in "Cancelled" status.

(4) If the liquidity of a stock is poor or there is no placed order for the time being, a market order may not be filled and will be automatically cancelled. After being cancelled, the order will be in "Cancelled" status.

(5) For a market order, we do not guarantee a better execution price. In particular, a market order may be filled at a higher or lower price when the market changes rapidly.

(6) During the trading hours when the morning session or afternoon session has just opened, there may be a greater chance that transaction prices will deviate since orders that have accumulated before the market opens need to be processed.

(7) For the sake of risk control, the price of a market order put on hold in the system is calculated as the current price * market order multiplier, and the market order multiplier is subject to adjustment by Futu from time to time according to market conditions. Your buying power will be reduced accordingly. After the order is filled or cancelled, the frozen part of your buying power will be released.

5.3 After the stop order is triggered, whether it is filled or not, the trigger conditions will not be effective again. Please place a new order if necessary.

5.4 After the stop order is triggered, the system will place a market order. For clients' convenience, the order details will be displayed in the original stop order.

5.5 After the stop order is triggered, the system will submit the order only when the client has enough maximum buying power on the account, and financing may be applied. 

5.6 Orders cannot be executed in multiple directions at the same time. If the order quantity is greater than the current position, the order will not be executed. For example, a buy and a buyback cannot be executed simultaneously; the same applies to a sell and a short sale. 

5.7 The stop order will only be triggered during the regular trading hours. 

5.8 Advanced orders are simulated by FUTU based on the basic orders and are irrelevant to Exchanges' advanced orders. Please refer to the actual order page for more details.

Disclaimer

Advanced orders are an order type developed by FUTU for clients' convenience. Meanwhile, FUTU tries to guarantee the execution of such orders. However, please be aware that the execution might be interrupted by poor network connections, server errors, etc. FUTU shall not be responsible or liable for any loss incurred.