What is ELS order?

Brief

The article describes ELS orders.

Details

ELS Order (Entry with Limit and Stop) is an order which contains two or three orders - a primary (opening) order and one or two secondary (closing) orders. A primary order can be a market or entry order. Secondary orders can be one limit entry and one stop entry (the stop entry can be trailing) whose trade operation is opposite to that of the primary order. All orders in ELS have the same amount.

When the primary order is executed, the secondary orders become active and then work like OCO orders - that is when one of them is executed, the other is automatically cancelled. But unlike OCO orders, ELS orders cannot open new positions, just close the existing ones in accordance with the FIFO rules.

Unlike regular stop/limit orders, activated secondary orders of ELS do not close the exact position for which they are created, but the oldest of the existing positions in the same symbol. If the symbol net position is closed by other orders so that the remaining amount is less than the amount of activated secondary orders, their amount will not be changed automatically, and any amount will be cancelled after the net position is closed in full.

ELS orders is intended to be used as alternative of regular Stop and Limit orders for US-based accounts.

Note that when you create a market order, you can create an ELS order only at once, secondary orders cannot be added later. As for creating an ELS order with a primary entry order, you can set entry limit or stop prices both when you create the entry order and later until the entry order is executed.

Also note that secondary orders cannot be joined to any other orders group (OCO or ELS).