How do conditional orders work?
A conditional order is an instruction to buy or sell a particular stock once a particular target criteria (decided by you) has been met.
When you place a conditional order, you set a “trigger price” and a “limit price”. When the stock price rises or falls to your trigger price, we’ll place a limit order into the market on your behalf.
This limit order will be subject to the CommSec Trading Terms and Conditions (T&Cs) including the general conditions of trade and trading rules (expiry after 20 trading days or “good for day” for standard accounts, or five trading days for Margin Loan accounts, or as otherwise cancelled in accordance with the T&Cs). A conditional order instruction remains valid in the event of a trading halt (unless the ASX purges orders for the security from the market).
Is the placement of the order guaranteed?
No, there is no guarantee that CommSec will sell or buy the stock if the trigger has been fired. The limit order must satisfy regular market rules prior to placement. There are several limitations on the placement of orders into the market as set out in the CommSec Trading Terms and Conditions.
What if a conditional order is not triggered?
If your conditional order is not triggered, it will expire after 12 months. At this point, they’re automatically removed, however you can place a new order.
Conditional orders may be purged by the ASX as a result of a corporate action. Conditional Trading triggers are also removed from the system at any time if the ASX purges orders for that stock from the market. This usually only happens if there is a change in the basis of quotation or some other corporate action.
Find out more information about conditional trading here.
How do I qualify for CommSec Conditional Trading?
You must be a CommSec CHESS sponsored client and you must have authorised a direct debit on your linked bank account (CommSec Margin Lending accounts are excluded as fees will be charged to your loan). You and all other account holders must read and understand the Conditional Trading Terms and Conditions and Risk Disclosure Statement.
The next step is to subscribe to conditional trading on the CommSec website. You can do this by logging in and going to Portfolio > Offers & Apply > Subscriptions > Conditional Orders
How do I place a conditional order?
Here’s how to place a conditional order online:
- Log in to your CommSec account
- Go to Trading
- Select Conditional Orders
- Select “Place Conditional Order” (or click here)
Do I have to place my conditional order each day?
No, you can place a GTC (“Good till Cancelled”) conditional order. This will remain open until either:
- Your trigger is fired
- 12 months has passed without your trigger being met (we automatically remove all conditional orders after 12 months)
- The ASX removes all orders for the relevant security
If your conditional order has been removed (because it expired or was cancelled), you can place a new one.
What are the costs involved with conditional trading?
Conditional orders are free to place and there is no fee when a conditional order is triggered. However, our standard brokerage rates apply if your order is executed.
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.
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.
How do I cancel or amend a conditional order?
You can cancel or amend a conditional order at any time before the trigger fires
Log in to your CommSec account, go to Trading, select Conditional orders, and then “Manage conditional orders”.
If your conditional order trigger has fired an order into the market, you can manage any unexecuted portion of your order by going to Trading > Shares > Manage Orders.
If my conditional order is triggered, how long will it be valid for if it doesn’t execute immediately?
If your trigger is reached and an order is fired, the order will remain in the market based on the initial trade expiry option you chose when setting the conditional order instructions. This will either be “good for day” or “Default Expiry” (20 ASX trading days for standard accounts and five trading days for margin lending accounts).
Conditional orders are subject to CommSec Trading Terms and Conditions, including the Conditional Order Instruction terms and conditions, available from commsec.com.au. Please review these before placing a conditional order.
If you need help amending or cancelling an order, please call us on 13 15 19 (or +61 2 9115 1417 if calling from overseas) between 8am and 6pm, Monday to Friday, Sydney time.
