Discretionary Orders Definition

Forex Glossary

Definition

The term optional order pertains to directions delivered to some broker that offers latitude to ascertain the ideal price to get a trade. In a few niches, optional orders enable traders to provide and also accept liquidity working with one purchase.

Explanation

The most frequent orders set by traders provide very special guidelines into a broker concerning the purchase price to purchase or sell a security. In a few niches, it’s likely to supply the broker with a few restricted discretion. That said the broker’s aim is to give the trader with the greatest possible price for their own securities. A optional order can also permit the broker to alter the time of this trade.

In certain niches, a optional order can consist of a limit order which also has a optional value which enables you to alter the budget assortment of the purchase. The marketplace would just understand the limitation price. As there’s less transparency in these markets, it’s difficult to ascertain the most effective attainable bid and offer rates. By way of instance, a trader might have the ability to set a limit order price of $10.50, allowing the broker $0.05 discretion.

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