Glossary

Stop-if-bid order

Definition

An order to buy a specified instrument in a rising market. If the price level specified is actually bid (reached or exceeded) on the market, the order will be filled at the next available market price. If the stop price is not reached, the order is not executed.

For example, if you sold GBPUSD at 1.4280, with a stop bid at 1.4330, your position would be closed (GBPUSD would be bought) if the bid price hits or surpasses 1.4330.

Stop-if-bid orders are only recommended for buying forex positions.

The use of stop-if-bid to sell forex positions can result in positions being prematurely closed if a market event causes the bid/ask spread to widen for a short duration.

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