Limit (LMT) if Touched order is a type of order that is automatically submitted when the market price reaches a trigger price. The trigger price can be set as the current market price, bid price, or ask price. Once triggered, the system will automatically submit a limit order. However, it should be noted that a stop-limit order cannot guarantee execution at a specific price and may deviate from the trigger price. LMT if Touched order is similar to the Stop Limit order, but it is placed above (for sell orders) or below (for buy orders) the current market price. Unlike the Stop Limit order that triggers a sell order below the current market price.
- A sell LMT if Touched order is always placed above the current market price and is typically used to lock in profits from long positions.
- A buy LMT if Touched order is always placed below the current market price and is typically used to lock in profits from short positions.
Features:
• Your purchasing power or positions will not be verified when placing an order; verification will only occur when the conditions are triggered.
• If there are 50 or more pending trigger orders, you cannot continue placing trigger orders.
• For cash accounts: The amount of pending trigger orders must be less than twice the account's net assets.
• For margin accounts: The amount of pending trigger orders must be less than five times the account's net assets.
• Orders are only available for US stocks and US stock options.
Example:
1.1 Buying Direction
Let's say you have a short position with a cost price of $10. If you submit a sell LMT if Touched order with a trigger price of $5 and a limit price of $6 when the market trading price is $20, the order will be automatically submitted to the market when the stock price reaches $5 or below. The order has the potential to be executed at $6 or at a better price.
1.2 Selling Direction
If you submit a sell LMT if Touched order with a trigger price of $30 and a limit price of $29 when the market trading price is $20, the order will be automatically submitted to the market when the stock price reaches $30 or above. The order has the potential to be executed at $29 or at a better price.
2. Order Time:
Orders can be placed at any time through our mobile app.
3. Trigger Time:
The trading session can be set as " Include Extended Hours" or " Only Regular Hours." The order trigger conditions will be applied based on the different session settings. Once the conditions are triggered, the system will automatically submit the default order to the market.
4. Order Duration:
Clients can choose the order duration to be day orvalid until canceled (GTC). If the order is not completely filled within the order duration, the system will automatically cancel the order.
If an order fails before the order was transmitted due to risk control measures, corporate actions, or other reasons, the order status will be updated as canceled, and the system will not continue to submit the order. Please be aware of the “Orders Assistant (Webull HK).
5. Explanation and Notes
5.1 After placing a conditional order, the purchasing power or position will not be immediately frozen. Validation of purchasing power or positions will only occur when the order's trigger conditions are met. Please note that triggering a conditional order does not guarantee its successful submission to the upstream broker or exchange. It is possible for the failure of order placing due to insufficient purchasing power or position in the account at that time.
5.2 After an order is triggered, there is no guarantee that it will be executed. LMT if Touched order simply means that the system automatically submits a limit order for the investor once the trigger price is reached. The processing logic for submitted orders after they are triggered is the same as placing a regular order, and if there is no match, the order will be automatically canceled after the specified period.
5.3 After an order is triggered, whether the corresponding order is executed or not, the order trigger condition will not be activated again. If needed, please place a new order..
5.4 After an order is triggered, the system will submit a limit order. For the convenience of client’s order management, the order type will remain the same, and the order type will still be displayed as a “Limit if Touched” order .
5.5 After an order is triggered, whether the order can be submitted to the market will be determined based on the maximum purchasing power of the account Financing may be used. Placing a trigger order does not freeze the purchasing power. However, if the order amount in the cash account exceeds twice the net asset value of the account, the order cannot be placed. Similarly, if the order amount in the margin account exceeds five times the net asset value of the account, the order cannot be placed.
5.6 Orders do not support executing multiple directions simultaneously. If the order quantity is higher than the product's position at the time of triggering, the order will not be executed. In other words, the order cannot simultaneously buy and buy-to-cover or sell and short selling.
5.7 LMT if Touched order will only trigger during the allowed trading hours as set in the configuration. | 