What is a price tolerance?

Price Tolerance is a risk management feature designed to help protect against unexpected market volatility.

When enabled, a Limit IOC (Immediate-or-Cancel) order will only be executed if a price within your defined tolerance range is available. Any favorable price movements (price improvements) are passed on to you.

• When selling, Price Tolerance sets the minimum price difference you’re willing to accept. It is subtracted from the current Bid price and shown as a limit price on the trade ticket.
• When buying, Price Tolerance sets the maximum price difference you’re willing to accept. It is added to the current Ask price and displayed as a limit price on the trade ticket.

Price Tolerance can be used when trading FX Spot, FX Forwards, CFD Indices, Commodities, Interest Rates, and Bonds. It is defined in pips, ticks, or percentage points, depending on the instrument.

If you disable Price Tolerance:

• For FX Spot and FX Forwards, the order changes from a Limit IOC to a Market IOC
• For all other supported instruments, the order changes to a Resting Market order

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