Stop order has a particular significance in relation to IG's platform. Here, we define stop order in general investing and explain what it means to you when trading with IG.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
A stop order is an instruction to your broker to execute a trade. If the market price moves past a particular level: one which is less favorable than the current market price. The meaning of a stop order is the opposite of a limit order, which instructs your broker to buy or sell an asset at a particular price that is more favorable than the current market price.
When trading with IG, stop orders and limit orders are referred to simply as stops and limits. To set up a stop entry order, choose order to open on the trading ticket and set the level at which you’d like to open a position.
To set up a stop closing order, simply add a stop to your position when completing the trading ticket.