Terms and conditions
Conditional orders do not have an expiration date and will be cancelled only in the following events:
- Customer cancels the order
- the stock is no longer listed (on Stock Exchange Listing)
- Directa is forced to cancel the order due to technical issues (communication to the customer on the trading site)
In case of dividend payments, the order will remain valid at the same limit price.
In case of Corporate Actions, Directa will modify both limit price and trigger price, upon condition that these can be estimated with due confidence, if this is impossible or problematic, Directa will cancel the order, informing the customer on the trading site.
If the new estimated limit price does not match the "tick size requirements", it will be modified, a downtick for buy orders and a uptick for sell orders.
In the event when the trigger price is reached at closing time, the conditional orders will be proceeded at beginning of the next regular market session (never valid in the After Hour).
We remind in particular that:
- for all stop order the quantity is considered "booked", thus can not be available for other sell orders unless the previous order is cancelled.
- in case of a Stop ALL order, as soon as the Stop ALL is triggered, if there are sell orders in trading on the same stock these will be automatically cancelled, if the position is already zero (or negative for a short sell) the Stop ALL will be deleted automatically.
Directa reserves the right to change the logic of the treatment of conditional orders in order to extend and improve the functionality, a simple communication in that regard is given on the trading site.
Investors taking into consideration this function should remember that in some cases the results may not fulfill the expectations, which are usually satisfied in normal conditions.
1) In particular it is not possible to guarantee that a conditional order will always be executed, even when the "trigger price" is reached or surpassed.
- "loser stocks" may be suspended before they reach the trigger price and reopen below the limit price
- a similar price drop may occur as well between closing time and the next re-opening of the market
- even during the trading hours, a contingent price drop might occur so fast that there would be no enough time to transmit and trade the order (this can more easily happen during opening, when a queue may prevent Directa from sending the order to the Stock Exchange in due time)
- for instance, the order may be rejected by Borsa Italiana because its limit price is outside the limit prices accepted in that moment.
2) Directa cannot give "unconditional" guarantees on the time span between moment the trigger price is hit, and the transmission/placement of the order by the Stock Exchange.
Although in normal circumstances the system can transmit the order within a few seconds and despite Directa's deployment of professional diligence on it, several factors and unforeseen circumstances outside Directa's control, may alter or halt this function in specific situations such as a suspension or a fault in the real time price stream or an interruption of the connections with the market, etc.)