gaps

[bently]

hi all, just a quick question, I am only paper trading at the moment but need to clarify something. If I placed a buy order above the friday close of GBP/JPY and as occured last night the pair gapped up at the asian open with my order below, would that order be triggered and I have a profitable open position, or would it be triggered if the pair fell back down to the order level ? Hope thats clear enough....

 

[stevespray]

You can only place a 'Limit Buy' below the market. In the situation you mention with a Buy Order above the market you'd have to use a 'Stop Order'. A Stop Order would be filled at the first tick once your order level was breached. So in this case your fill would be some way from the level set in your order.

Hope this helps?

No free lunches I'm afraid!

Steve.