Can I place stop orders on exchange-traded options?

Stop Orders on ETOs with Saxo

With a Totality account, you can place Stop and Stop-Limit orders on Exchange-Traded Options (ETOs), offering greater control over your trading strategy.

Key Details

• Supported Asset Classes: Stock and Stock Index Options

• Supported Exchanges: OPRA (U.S.) and Euronext (Amsterdam, Paris, Brussels, Milan)

• Order Types: Stop and Stop-Limit

• Order Scope: Available for both single-leg (outright) and multi-leg (strategy) options

Single-Leg (Outright) Orders

A stop order will be triggered if any one of the following conditions is met:

1. Price Confirmation: Two consecutive quoted offer (for buy) or bid (for sell) prices meet or exceed the specified stop level.

2. Price + Size Change: A single quoted offer (buy) or bid (sell) price meets the stop level and the corresponding size increases.

3. Bid/Offer Match: The quoted bid (for buy) or offer (for sell) price meets or exceeds the stop level.

The trigger mechanism is designed to avoid false activations due to sudden price spikes, while still responding to genuine market movements.

Multi-Leg (Strategy) Orders

Stop orders on multi-leg strategies use synthetic pricing, calculated from the individual legs quoted on the exchange.  

A stop order will trigger if:  

1. Sustained Price Match: The synthetic offer (buy) or bid (sell) price meets the stop level for a few consecutive seconds, with recent quotes on all legs.

2. Brief Price Match: The synthetic price meets the stop level for less than a second, again with recent quotes on all legs.

This mechanism helps prevent triggering based on stale or isolated quotes from one leg of the strategy.

Important Notes

• Stop-Limit and OCO (One-Cancels-the-Other) orders are not currently supported.

• All triggers are designed to reflect true market conditions and reduce the risk of execution based on temporary price distortions.

When opening a trade ticket on an ETO, click on the order type to select Stop or Stop Limit.

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