Limiting limit order risks by specifying lower and upper bounds
A trader can limit his or her risks by setting the optional lower and upper bounds fields in the Buy/Sell Limit Order window. An order will then be executed only (i) if the exchange rate to be applied is equal to or higher than the lower bound (if specified) and (ii) if the exchange rate to be applied is equal to or lower than the upper bound (if specified). Thus, for example, if the current rate is 1.660 when a limit order for 1.640 is submitted, and the trader want to ensure that a trade is executed with a rate equal to or lower than 1.640, then the trader can set the upper bound to 1.640.
If, at the time a limit order is executed, the most current exchange rate at the OANDA servers lies outside the interval specified by the lower and upper bounds, then the limit order will be rejected and the limit order is erased from the system.
"I say high, You say low, You say why, and I say I don't know..."
