Hello all, I have just started a dummy Oanda account today and am trying to get to grips with it. Apologies for being so stupid perhaps, but could someone explain to me (in very simple terms) what the Lower Bound and Upper Bound option boxes are for? They appear under the buy/sell market order section along with Stop Loss and Take Profit options (i am ok with these two). I’ve followed the Oanda training section but I don’t understand their explanation. Your help would be appreciated. Thanks alot - Kamoshikasan:)
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I also had a difficult time with their explanation. In a fast moving market, such as a news release, the system may not have time to fill your order, if you apply bounds to your order, they may be able to fill it (within your bounds) otherwise your order may not be filled. I hope this helps.
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Thats a better explanation that Oanda gave. I understand now. Many thanks!!
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The market is not guaranteed to move in 1 pip increments.
In a fast moving, illiquid market situation (the more common example of this is the few seconds after a major news announcement) you’ll find that the next valid buy or sell point is multiple pips away from where the last one was.
If the market ‘skips’ over your order then it will not get executed. Adding the upper and lower bounds values is telling Oanda that it’s okay to fill your order anywhere between these two values if the next price passes your original order price but falls between the bounds you have specified.
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hi,
The upper & lower bound values. I read through above but I’m still not understand. The question, is not posted by me, but i am also have a difficultity to understand. Can pls show one example with buy a USA/JPN currency with a stop loss& limit order with included the upper & lower bound . Where do you put exactly the bounds. Thanks
Lower bounds below your stop loss, upper bounds above your take profit to ensure your order is executed. I once lost hundreds of dollars when a trade skipped over my stop loss. Over the weekend for example where Fridays price and Sundays price could be drastically different.
What do you mean by skipped over? Even with slippage, it will still trigger the SL after the slippage goes past it, won’t it?
This is a post from 2007. The most recent reply was from 2022. I doubt you will get a reply.
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