- What are Conditional Orders?
-
Conditional Orders provide you with a controlled entry and exit strategy for a particular
security. You can identify specific securities and instruct us to place these on
the market to purchase or sell when the price reaches a pre-determined level. As
you can see, this goes far beyond simple alerts by implementing a pre-arranged strategy
without the need for you to contact us further.
Back to top
- How can Conditional Orders work for me?
-
One of the biggest benefits of conditional orders is that it allows you to make
sensible, considered decisions before you feel the pressure of a volatile market.
It allows you to carry on with everyday life without having to constantly monitor
the market.
You decide which particular security you wish to buy or sell and set an acceptable
threshold from the current trading price. CommSec will then monitor the market on
your behalf and input your order when your pre-determined trigger price has been
met.
There are four types of Conditional Orders that you can use depending on your strategy:
Falling Sell, Rising Buy, Falling Buy & Rising Sell.
This suite of conditional order products can be used to pre-define your entry and
exit points for a given security. This is particularly significant to investors
with short-term and long-term investment horizons, especially those that use technical
analysis to supplement their investment decisions.
Back to top
- What is Technical Analysis?
-
Technical analysis can be defined as the study of market data such as price levels,
trading volume and price fluctuations, to determine future price movements in a
given security or index. Technical analysts frequently use charts to objectively
model how past market movements may influence a future supply and demand (and therefore,
price) rather than concentrating on fundamental information such as the economic
outlook, earnings or other business-related factors that may affect a security's
value.
Back to top
- What is Falling Sell?
-
A Falling Sell is an instruction for a particular security in your portfolio to
be placed for sale on the market when it trades at a pre-determined price. In essence
it is a stop-entry or stop-exit instruction. You decide which security you wish
to sell, and set an acceptable entry or exit price below the security's current
trading price.
Imagine you own securities trading at $10.00 and you want to ensure that if the
security falls, you sell out at no less than $9.43. Through CommSec Conditional
Trading, you would set a Falling Sell Trigger at $9.50 along with a Falling Sell
Limit Order at $9.43. Should the securities trade at the trigger point of $9.50
or lower, your limit order will be submitted* to sell the shares at no less than
$9.43. If there is insufficient demand above or at $9.43 your triggered order will
remain in the market subject to CommSec's General Conditions of Trade and Trading
Rules (20 Trading Days for standard accounts, 5 Trading Days for Margin Lending
Accounts, or good for trading session for CFD Accounts).
* Orders are placed subject to CommSec's vetting procedures
There are two ways to use Falling Sell
-
Lock in any gains you have already received.
By way of example, a few months after you buy 1,000 units of XYZ Ltd at $10 per
unit, the price increases to $11.60 per unit. You have an unrealised gain of $1.60
per unit. You do not want to lose what you have gained or the chance for further
gains, but you want to realise your profit if the price starts going down.
To protect your investment you submit a Falling Sell Trigger at $11.50. You ask
CommSec to submit a Falling Sell Limit Order* to sell the security at not less than
$11.40, if the security trades at or below your Stop Loss Trigger. You can also
arrange to be alerted via SMS or email when the security price reaches your Falling
Sell Trigger (not available for CFD accounts). If the security price descends to
your trigger point at $11.50, your sell order will be placed into the market*. If
there are sufficient buyers in the market your security will be sold at no less
than $11.40 and your gain may be realised.
*Orders are placed subject to CommSec's vetting procedures.
The following diagram is for illustrative purposes only:
-
Limit any losses you are willing to take. For example, let's say
you buy 1,000 units of XYZ Ltd at $10 per unit. You want to limit the losses of
your investment, so you set your Falling Sell Trigger at $9.50, with a Falling Sell
Limit Order to sell your units at no less than $9.43 if the security trades at or
below your Falling Sell Trigger. You can also arrange to be alerted via SMS or email
when the price trades at your Falling Sell Trigger price (for equity conditional
trading orders only). Should the security trade at $9.50 or lower, your limit order
will be placed* to sell the security at no less than $9.43.
The following example is for illustrative purposes:
Back to top
- What is a Falling Buy?
-
A Falling Buy also gives you a controlled entry or exit strategy to a particular
security. You can identify a particular security and instruct CommSec to place a
buy order in the market when the price falls to a pre-determined level.
You may wish to purchase a particular security on the assumption that the price
of that security will fall. For example, say you have been watching the price of
XYZ Ltd which has been trading at $3.10 and appears to be declining. You may wish
to place a buy order if the price falls below $2.80 but pay no more than $2.85.
In this instance, you could create a Falling Buy Trigger with a trigger price of
$2.80 and a limit price of $2.85. If the security trades at the trigger price your
limit order will be submitted* to buy the securities at no more that $2.85. If there
is insufficient supply below or at $2.85 your triggered order will remain in the
market subject to CommSec's General Conditions of Trade and Trading Rules (20 Trading
Days for standard accounts, 5 Trading Days for Margin Lending Accounts or good for
trading session for CFD Accounts).
*Orders are placed subject to CommSec's vetting procedures
The following example is for illustrative purposes only:
Back to top
- What is a Rising Sell?
-
A Rising Sell is an instruction for a particular security in your portfolio to be
placed for sale on the market when it trades at a pre-determined price. You decide
which security you wish to sell, and set an acceptable exit price above the security's
current trading price.
This order type allows you to lock in your gains and sell if the market moves upwards.
If the price of a particular security has been rising, you may wish to sell some
of the security if it reaches a particular price and take the gains. For example,
let's say you have been watching the price of XYZ Ltd which has been trading at
$4.00 per unit and appears to be rising. You may wish to place a Rising Sell Order
if the price reaches $4.40 but sell at no less than $4.33. In this instance, you
could create a Rising Sell Trigger with a trigger price of $4.40 and a limit price
of $4.33. Should the security trade at the trigger price, your limit order will
be submitted* to sell the security at no less that $4.33. Assuming there is insufficient
demand above or at $4.33 your triggered order will remain in the market subject
to CommSec's General Conditions of Trade and Trading Rules (20 Trading Days for
standard accounts, 5 Trading Days for Margin Lending Accounts or good for trading
session for CFD Accounts).
*Orders are placed subject to CommSec's vetting procedures
The following example is for illustrative purposes only:
Back to top
- What is a Rising Buy?
-
A Rising Buy order can be used as a strategic order derived from your research using
technical analysis. Many traders conduct charting analysis which they use to pre-determine
their entry and exit points for a particular security.
Rising Buy is a trigger that gives you a controlled entry or exit strategy to a
particular security. You can identify a particular security and instruct CommSec
to place a buy order on the market when the price rises to a pre-determined level.
This can allow you to buy into a security that may be on the rise. A Rising Buy
Order may be used in anticipation of momentum raising the price of a particular
security. If the price of the specified security exceeds the Rising Buy trigger
price you have set, CommSec will place your specified order.
For example, imagine you are researching the security price of a particular security
called XYZ Ltd, which is currently trading at $9.10 per unit. Your charting analysis
shows that if the price rises to $9.15 the likelihood is high that momentum may
keep the price rising. Through CommSec's Rising Buy, you could set a Rising Buy
Trigger at $9.15 along with a Rising Buy Limit Order at $9.19. If the securities
trade at the trigger point of $9.15 or higher your limit order will be submitted*
to buy the securities at no more than $9.19. If there is insufficient supply below
or at $9.19 your triggered order will remain in the market subject to CommSec's
General Conditions of Trade and Trading Rules (20 Trading Days for standard accounts,
5 Trading Days for Margin Lending Accounts or good for trading session for CFD Accounts).
*Orders are placed subject to CommSec's vetting procedures
The following example is for illustrative purposes only:
Back to top
- Two ways to pay*.
-
- You can elect to pay an "Up front" Conditional Trading fee of $9.95^ plus standard
brokerage if your order trades. You pay the "Up front" fee regardless whether your
order trades; or
- You can choose to pay "On execution" of the order and only pay $14.95^ plus standard
brokerage when an order trades. You do not pay the "On execution" fee if no part
of your order is executed.
* There are no fees for ASX CFD conditional trading instructions
^ The "Up front" and "On execution" fees are inclusive of GST and are applicable
for orders up to $40,000 in value at the time of trading the security. Orders valued
at greater than $40,000 are charged at: "Up front" 0.099% of the trade value; "On
execution" 0.12% of the trade value.
- Conditional Trading can make the ride a little smoother but it can't take all the
bumps out of the market
-
Conditional Orders are innovative and sophisticated products. Investors need to
understand that, like all orders, conditional trades are taken on a "best endeavours"
basis.
This means that while we are committed to doing our very best for our customers,
the execution of a Conditional Order cannot be guaranteed. An order might be subject
to our vetting procedures before it is placed, for example, to identify inappropriate
trading. Also, if the price moves rapidly through the trigger and limit prices your
Conditional Order may not be executed. Any Conditional Orders placed will remain
in the market in line with normal order rules (20 Trading Days for standard accounts,
5 Trading Days for Margin Lending accounts or, or good for trading session for CFD
Accounts), unless they are executed or purged by the ASX.
Back to top
- How to qualify and apply for CommSec Conditional Trading
-
For ASX CFD trading accounts:
- You and all other beneficial owners on the account, must read, understand and accept
the Terms and Conditions and agree to act in accordance with them.
- You and all other beneficial owners on the account, must read, understand and accept
the Risk Disclosure Document.
- You must correctly answer every question in a short test to demonstrate your understanding
of the process and the risks attached.
In addition to the above, for equity trading accounts:
- You must be a CommSec CHESS Sponsored client.
- You must have authorised a direct debit on your linked bank account (CommSec Margin
Lending accounts excluded as fees will be charged to their loan).
Back to top
- What is Falling Sell Trigger?
-
A Falling Sell is an instruction for a particular security in your portfolio to
be placed for sale on the market when it trades at or below a pre-determined price.
You decide which security you wish to sell, and set an acceptable entry (for CFD
only) or exit price below the security's current trading price.
Imagine you own securities trading at $2.00 and you want to guard against the security
falling, by selling out at no less than $1.70. Through CommSec Falling Sell, you
would set a Falling Sell Trigger at, say, $1.75 along with a Falling Sell Limit
Order at $1.70. If the securities trade at the trigger point of $1.75 or lower your
limit order will be submitted to sell the securities at no less than $1.70
If there is insufficient demand at or above $1.70 your triggered order will remain
in the market subject to CommSec's General Conditions of Trade and Trading Rules
(20 Trading Days for standard accounts, 5 Trading Days for Margin Lending accounts
or good for trading session for CFD Accounts).
Back to top
- What is a Falling Buy Trigger?
-
A Falling Buy is an instruction to purchase a particular security on the market
when it trades at or below a pre-determined price.
If the security for XYZ Ltd is trading at $2.00 and the price has been falling,
you may wish to place a buy order if the price falls through $1.80 with a limit
price of $1.85. This means that if the price drops to $1.80, your buy order will
be placed in the market to buy XYZ Ltd at no more than $1.85.
If there is insufficient market depth available below or at $1.85, your triggered
order will remain in the market subject to CommSec's General Conditions of Trade
and Trading Rules (20 Trading Days for standard accounts, 5 Trading Days for Margin
Lending accounts or good for trading session for CFD Accounts).
Back to top
- What is a Rising Sell Trigger?
-
A Rising Sell is an instruction for a particular security in your portfolio to be
placed for sale on the market when it trades at a pre-determined price above the
current price. You decide which security you wish to sell, and set an acceptable
entry (for CFD only) or exit price below the security's current trigger price.
If the security for XYZ Ltd is trading at $2.00 and the price has been rising, you
may wish to place a sell order if the price rises over $2.20. You can place a Rising
Sell with a trigger price of $2.20 and a limit price of $2.15. This means that if
the price rises to $2.20, your sell order will be placed in the market to sell XYZ
Ltd (or cover of XYZ Ltd) at no less than $2.15.
If there is insufficient demand above or at $2.15, your triggered order will remain
in the market subject to CommSec's General Conditions of Trade and Trading Rules
(20 Trading Days for standard accounts, 5 Trading Days for Margin Lending accounts
or good for trading session for CFD Accounts).
Back to top
- What is Rising Buy Trigger?
-
Using some analysis techniques such as charting, you can derive that a particular
security may increase its prices due to an increase in momentum if the price surpasses
a point above its current trading price.
A Rising Buy is an instruction for a particular security to be purchased on the
market when it trades at or above a pre-determined price. You can identify a particular
security and instruct us to place a buy order on the market when the price rises
to a pre-determined level. This can allow you to buy into a security that may be
on the rise.
Imagine security XYZ Ltd is trading at $9.10 and you expect the price to rise. You
place a Rising Buy Trigger at $9.15 with a Rising Buy Limit Price of $9.19. Should
the trading price rise to $9.15, the Rising Buy Trigger would fire, placing a Rising
Buy Order with a limit price of $9.19. If there is sufficient supply, the security
would be purchased at no more than $9.19.
If there is insufficient supply at or below $9.19 your triggered order will remain
in the market subject to CommSec's General Conditions of Trade and Trading Rules
(20 Trading Days for standard accounts, 5 Trading Days for Margin Lending accounts
or good for trading session for CFD Accounts).
Back to top
- How do I qualify and apply for CommSec Conditional Trading?
-
For ASX CFD trading accounts:
- You and all other beneficial owners on the account, must read and understand the
Terms and Conditions and agree to act in accordance with them.
- You and all other beneficial owners on the account must read and understand the
Risk Disclosure Document.
- You must correctly answer every question in a short test to demonstrate your understanding
of the process and the risks attached.
In addition to the above, for equity trading accounts:
- You must be a CommSec CHESS Sponsored client.
- You must have authorised a direct debit on your linked bank account (CommSec Margin
Lending accounts excluded as fees will be charged to their loan).
Back to top
- Do I have to place my Conditional Order each day?
-
No. You can place a GTC ('Good Till Cancelled') Conditional Order. Although, if
that trigger is not fired within 12 months from the date the trigger was placed,
the trigger will be purged and you will have to place a new conditional order instruction.
Your trigger instruction will be purged from our system whenever the ASX removes
all orders in the same security as your trigger from the market.
Back to top
- In what situation might my Conditional Order fail to execute?
-
If your Conditional Order is triggered, CommSec does not guarantee that the order
will be executed. The placement of a triggered order into the market is subject
to CommSec's Conditional Order Instructions, the General Conditions of Trade and
the Trading Rules.
a.) Triggered orders for Falling Sell or Rising Sell may not execute for the following
reasons:
- There are insufficient units to execute (not enough holdings)
- There is insufficient demand in the market (no buying at or above your price)
- The security re-opens below your order limit after a trading halt and the ASX has
not purged orders from the market
You should also note that where a security price falls sharply, without any trades
occurring between price steps, your order might not be executed. For example, you
have the following Conditional Order:
- Falling Sell or Rising Sell Trigger - $1.10
- Falling Sell or Rising Sell Limit Order - $1.08
If the security trades at $1.12, then $1.11, and then $1.07 without trading between
$1.10 and $1.07, your order will not be executed. The trigger, however, will fire
your order into the market at $1.07, where it will stay until executed, purged or
it expires.
b.) Triggered orders for Rising Buy and Falling Buy may not execute for the following
reasons:
- There is insufficient demand in the market (no selling below or equal to your price)
- The security re-opens above your order limit after a trading halt and the ASX has
not purged orders from the market
You should note that where a security price rises quickly, without any trades occurring
between price steps, your order might not be executed. For example, you have the
following Conditional Order:
- Rising Buy or Falling Buy Trigger - $1.00
- Rising Buy or Falling Buy Limit Order - $1.03
If the security trades at $0.99 and then $1.04 without trading between $1.00 and
$1.03, your order will not be executed. The trigger, however, will fire your order
into the market at $1.03, where it will stay until executed, purged or it expires.
Back to top
- How do I place a Conditional Order?
-
To place a Conditional Order you need to go to the Conditional Orders page on the
CommSec site. From here, you can nominate the security you wish to trade, the trigger
type - Falling Sell, Rising Buy, Falling Buy and Rising Sell, the trigger price,
the limit price and the number of units you wish to buy or sell if your trigger
is fired. You must decide whether you wish to pay the Conditional Orders fee "Up
front" on placement of the trigger, or "On execution" when the Conditional Order
is executed (no fee payable for ASX CFD conditional orders). Your instruction will
be displayed for your confirmation. If you are satisfied, click Confirm and you
will receive a trigger reference number.
Conditional Orders can also be placed over the phone by contacting us on 13 15 19
between 8 am and 7 pm (EST), Monday to Friday. For ASX CFD Conditional Orders over
the phone, you can contact us on 1300 307 853 between 8 am Monday and 1 pm Saturday,
Sydney time.
Back to top
- If my Conditional Order is triggered, how long will it be valid for
if it does not execute immediately?
-
Conditional Orders remain in the market subject to CommSec's General Conditions
of Trade and Trading Rules (20 Trading Days for standard accounts, 5 Trading Days
for Margin Lending accounts or good for trading session for CFD Accounts).
Back to top
- If a Conditional Order instruction is not triggered, when will it expire?
-
The Falling Sell, Rising Buy, Falling Buy and Rising Sell instruction will expire
after 12 months or when orders are purged in market depth by the ASX (ie when there
is a change in the basis of quotation).
Back to top
- What happens when the Conditional Order Trigger price is
met?
-
Your order will be placed into the market when the last trade for the security matches
your Conditional Order Trigger price.
Please note if a particular security in your portfolio trades unfavourably once
your order is executed, you cannot cancel the executed order. This is the case regardless
of the security price movement and Conditional Order type.
Back to top
- When can I place a Conditional Order?
-
Any time of day online. Your Conditional Order Trigger can only be fired when the
ASX/SFE is open and your security trades in accordance with the order type and trigger
price.
You can also place Conditional Orders over the phone by contacting us on 13 15 19
between 8 am and 7 pm (EST), Monday to Friday. For ASX CFD Conditional Orders over
the phone, you can contact us on 1300 307 853 between 8 am Monday and 1 pm Saturday,
Sydney time.
Back to top
- Can I cancel or amend a Conditional Order instruction?
-
You can cancel a Conditional Order before it is fired by going to the Outstanding
Triggers screen on the CommSec site. Simply go to the top menu bar and click on
Orders, select Conditional Trading, then select 'Outstanding Triggers', and select
Cancel for the appropriate trigger. You can amend your trigger limit or units at
any time free of charge prior to the trigger firing.
You can also amend or cancel a Conditional order over the phone by calling us on
13 15 19 between 8 am and 7 pm (EST), Monday to Friday. For ASX CFD Conditional
Orders over the phone, you can contact us on 1300 307 853 between 8 am Monday and
1 pm Saturday, Sydney time.
Back to top
- Will you advise me about Conditional Order execution or a change
in status?
-
You can view the status of your conditional orders on the CommSec website and CommSec
Professional Trader. Once you're logged in to the CommSec website, select Orders
from the top menu bar, select Conditional Trading, then you can choose from Outstanding
Triggers, Fired Triggers and Cancelled Triggers. Alternatively for Professional
Trader, click on the Orders menu, then select Conditional Orders, and choose from
Open, Fired and Cancelled from the left hand dropdown menu.
Outstanding triggers remain online until they are fired or cancelled but note that
the trigger will be purged 12 months after the instruction was placed.
If you have configured Order Confirmations for your account, CommSec will send you
an email when you place, amend or cancel your trigger and when the trigger fires
or is purged. You will also receive a confirmation email when the order is placed
(the order resulting from your trigger). These email confirmations are not applicable
for ASX CFD Conditional Orders.
If you have opted to receive Electronic Confirmation Contract Notes, you will receive
an emailed Confirmation Contract Note when the trade is booked to your account.
You can configure CommSec Conditional Orders to notify through SMS if the status
of your trigger changes. This is not available for ASX CFD Conditional Orders.
Back to top
- How much does it cost to place a Conditional Order?
-
Conditional Trading is easily affordable with two pricing options^.
- You can elect to pay an "Up front" fee of $9.95* when you place an order. If the
order is subsequently triggered and executed you then pay brokerage on the trade.
You pay the "Up front" fee regardless of execution; or
- You can choose to pay "On execution" and pay $14.95* plus standard brokerage when
an order is executed. You do not pay the "On execution" fee if the trade is not
executed.
^ No fee payable for ASX CFD Conditional Orders
* The "Up front" and "On execution" fees are inclusive of GST and are applicable
for orders up to $40,000 in value at the time of selling the stock. Orders valued
at greater than $40,000 are charged at: "Up front" 0.099% of the trade value; "On
execution" 0.12% of the trade value.
Back to top
- What happens if a corporate action takes place?
-
Where a corporate action will affect the price of a security, the ASX will purge
all outstanding orders from the market. CommSec will delete your Conditional Order
as soon as we receive notification from the ASX. If you have chosen to receive Conditional
Order Notifications, CommSec will alert you via SMS or email when the status of
your trigger changes in relation to a corporate action. This is not available for
ASX CFD Conditional Orders.
If the market in your security is purged by the ASX, you will need to replace your
Conditional Order Trigger to take account of the adjusted security price. Note,
you will be charged for any new Conditional Order placed as a result. No fee payable
for ASX CFD Conditional Orders.
Back to top
- After my trigger fires, will my order be placed onto the market
automatically?
-
When a conditional order is fired, the order is submitted to CommSec's Straight
Through Processing system where the order will be vetted in the same way as if you
had placed the order. In some circumstances, your order may not be placed because
of insufficient credit to place a buy order or insufficient units to place a sell
order.
Back to top
The Conditional Order examples given in this article are provided for illustrative
purposes only. This article has been prepared without taking account of the objectives,
financial situation or needs of any particular individual. For this reason, any
individual should, before acting on the information in this article, consider the
appropriateness of the information, having regard to the individual's objectives,
financial situation and needs and, if necessary, seek professional advice.