A Stop order is 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.
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.
Stop if Bid orders to buy are when triggered most often filled at the order level plus the client spread. During volatile markets with price gaps, orders may be slipped to the current market offer price.
Stop if Offered orders to sell are when triggered most often filled at the stop order level minus the client spread. During volatile markets with price gaps, orders may be slipped to the current market bid price.
Saxo Bank's order management system has certain client protection mechanisms in place that ensures that the vast majority of orders are filled on transparent prices without any slippage. Please see our Historical Stop Order fill statistics here.
Resting Stop Limit order – A Stop Limit order with variable duration (Day, Good Til-Cancelled etc) that rests at Saxo at a specific price until triggered, cancelled or expired. Once the price is triggered, the Resting Spot Limit order is converted into a Resting Limit order at the Stop price. A Resting Limit order can result in partial fills. If the order cannot be filled in full, the residual amount will continue working for the set duration.