Understanding attached orders

This article explains the definition, types, rules, and important considerations regarding attached orders.

1. Definition of attached orders

An attached order (also referred to as a child order) is an order that is subordinate to the current order (known as the parent order) and is primarily used to close the position of the parent order. The attached order will be placed only after the parent order is fully filled and the target price is reached.

When you submit the parent order, whether it is a buy order or a short sell order, you can set up attached (child) orders directly via the order interface. By default, the system does not set attached orders (i.e., "None").

2. Available types of attached orders

Currently, the system supports 3 types of attached orders:

Profit Taker Order

• Take-profit order: After you set a take-profit attached order, when the parent order is fully filled and the market price reaches the take-profit price, the system will automatically place a limit order with the target price set to the take-profit price. If the parent order is a buy order, the take-profit price must be higher than the parent order price. Conversely, if the parent order is a short sell order, the take-profit price must be lower than the parent order price. The validity period for the attached order can be set to Valid for the day, Good 'til canceled, or Good 'Til Date.

• Stop order: After you set a stop attached order, when the parent order is fully filled and the market price reaches the stop-loss price, the system will automatically place a limit order with the target price set to the stop-loss price. If the parent order is a buy order, the stop-loss price must be lower than the parent order price. Conversely, if the parent order is a short sell order, the stop-loss price must be higher than the parent order price. The validity period for the attached order can be set to Valid for the day, Good 'til canceled, or Good 'Til Date.

• Bracket order: When the parent order is fully filled, if the market price first touches either the take-profit or stop-loss price, the system will automatically submit a limit order with the trigger price as the target price. If the parent order is a buy order, the take-profit price must be higher than the parent order price, and the stop-loss price must be lower than the parent order price. Conversely, if the parent order is a short sell order, the take-profit price must be lower than the parent order price, and the stop-loss price must be higher than the parent order price. The validity period for the attached order can be set to Valid for the day, Good 'til canceled, or Good 'Til Date.

3. Restrictions on parent order types

Parent orders can only be buy or short sell orders. A short sell order will be rejected if you hold a sellable position; a buy order will be rejected if you have a short position that needs to be covered.

4. Risk control mechanisms

The risk assessment for an attached order will be executed only after the parent order is fully filled and the attached order's target price is reached. If the attached order exceeds the trading limit or fails the risk assessment, the attached order will not be executed.

5. Impact of position changes

After the parent order is fully filled, the related position will not be frozen. If your position changes due to other trades, a triggered attached order may fail the risk assessment.

6. Linkage rules for bracket orders

When one attached order within a bracket order is canceled or rejected, its paired attached order will be canceled or rejected simultaneously.

7. Quantity modification rules

If you modify the quantity of the parent order before it is fully filled, the quantity of the attached order will be automatically adjusted to match the new amount.

8. Restrictions on trading sessions

Take-profit and stop orders are only triggered during consecutive trading sessions. They will not be triggered overnight, or during pre-market or after hours.

9. Processing rules upon expiration

If the parent order is not fully filled before its expiry date, the attached order will be automatically canceled (without being triggered) upon the expiration of the parent order.

10. Order status linkage rules

When a parent order is canceled, all its attached orders are automatically canceled. When a parent order is deleted, all its attached orders are automatically deleted.

Disclosures

Long Bridge Securities Pte. Ltd. provides the attached order feature to help enhance your trading experience. We will make every effort to ensure the stability and reliability of this service. However, Long Bridge Securities Pte. Ltd. shall not be held liable for any losses arising from non-execution or incorrect execution of orders due to network interruptions, server issues, or any human errors.