Want to exit a trade before the expiry?

You can!

 

There are many reasons as to why you may want to exit a trade early. Whether it is because you want to take an early profit or because you want to minimize your loss, there are multiple ways to close a position prior to its expiry.

 

Digital options are versatile. It is possible to exit a trade right up until the time of the designated expiry, as long as there are other Participants on the Exchange willing to trade with you.

 

When placing a close order request, it is important to understand the difference between an IOC (Immediate Or Cancel) order and a GTC (Good Til Cancel) order:

 

IOC (Immediate Or Cancel) Limit Orders: An IOC order means that if there is no matching order on the order book when the order update is submitted, the order update is cancelled right away and is not left sitting on the order book. IOC is the default order type on the Cantor Exchange.

 

GTC (Good Til Cancel) Limit Orders: A GTC order means your order will sit on the order book until one of the following events occurs: the order is filled at the designated Limit Price (that is, the price at which you want your order to be executed); the order is cancelled; the contract reaches the expiry time.

 

Please note: When placing a GTC order, it is not guaranteed that your order will be filled. Your order will stay on the server until it is filled, until it is cancelled, or until the designated expiry occurs.

 

For information about exiting a position early using the TradeWx weather trading interface, please visit TradeWx Help.

 


closing a trade early

Depending on which interface you are using to trade, there may be more than one way to exit a trade early. Select which interface you are using below to read more about methods to close a position prior to its expiry:

• On any interface: Placing an Order on the Opposing Position

• On the Tradologic interface: Using the Close button

 

You can always review your Gain/Loss History report for more details about your trades.

 


On any interface:

PLACING AN ORDER ON THE OPPOSING POSITION

For any trading interface that connects to the Cantor Exchange market (e.g. the Tradologic interface, the CX Markets app), you may exit a trade early by placing an order for the same asset, expiry, strike, and quantity but opposing position of your initial trade.

 

Below you can read an example of closing a trade early by placing an order on the opposing position using the Tradologic interface.

 

Let’s say we initially purchased a 30-contract GBP/USD Ask (Buy) position for the 16:00 (4:00 PM ET) expiry at the 1.2185 strike price of $0.86 per contract and we decide we want to close out of this position prior to its expiry.

 

Gen_UI

 

 

STEP 1: Select the same asset and expiry of your initial Trade

Using the drop-down menus in the top left corner of the interface, select the same asset and expiry of your initial order.

 

To match our initial trade, we have selected GBP/USD and the 16:00 (4:00 PM ET) expiry.

 

 

STEP 2: Select the same strike but opposing position of your initial trade

You can select your strike and position from the list of strikes to the left of the chart by pressing on the Bid/Ask button next to your desired strike level. Clicking on the Bid/Ask button will yield an order ticket window where you can customize your order request.

 

Our initial trade was for the Ask (Buy) position on the 1.2185 strike. Therefore, to close our initial trade, we have selected the opposing Bid (Sell) position for the same 1.2185 strike.

 

Order ticket_1

 

 

STEP 3: Enter the same number of contracts as your initial trade

You can modify the quantity of your order by updating the value in the Quantity field in the order ticket window.

 

Quantity red_1

 

Since our initial trade was for 30 contracts, we have updated the quantity for our close order request to also be 30 contracts.

 

Quantity update_1

 

 

Step 4: Place your close order request

Review your order request in the order ticket window. Ensure that your order request is for the same asset, expiry, strike, and quantity as your initial trade, but on the opposing position. When you’re ready, click the Place Order button to submit your close order request.

 

Place Order red_1

 

If your close order request is successful, you will see the Quantity of your initial trade update to “0” in the Trades tab under the chart.

 

Closed red_1

 

If you placed a GTC order and your close order request is not filled right away, it will appear in the Orders tab.

 

 


On the Tradologic interface:

Using the Close button

On the Tradologic interface, you may also close a trade prior to its expiry by using the Close button in the Trades tab. When using this method, you are actually just placing an order request on the opposing position of your initial trade. When you press the Close button, the Tradologic interface will populate an order ticket with the same asset, expiry, strike, and quantity as your initial trade, but on the opposing position.

 

Below you can read an example of closing a trade early using the Close button on the Tradologic interface.

 

Let’s say we initially purchased a 25-contract EUR/USD Ask (Buy) position for the 16:00 (4:00 PM ET) expiry at the 1.0885 strike price of $0.67 per contract and we decide we want to close out of this position prior to its expiry.

 

Gen_UI

 

 

Step 1: press the close button next to your initial trade

To close your initial order using this method, press the Close button in the Trades tab next to your initial trade.

 

Close highlight_1

 

This will yield an order ticket window populated with the same asset, expiry, strike, and quantity as your initial trade, but on the opposing position.

 

Since we initially opened a 25-contract EUR/USD Ask (Buy) position for the 16:00 (4:00 PM ET) expiry on the 1.0885 strike, the order ticket window was populated with the same asset, expiry, strike, and quantity, but for the opposing Ask (Sell) position.

 

Order Ticket_1

 

 

Step 2: Place your close order request

Review your order request in the order ticket window. When you’re ready, click the Place Order button to submit your close order request.

 

Place order highlight_1

 

If your close order request is successful, you will see the Quantity of your initial trade update to “0” in the Trades tab under the chart on the interface.

 

Closed highlight_1

 

If you placed a GTC order and your close order request is not filled right away, it will appear in the Orders tab.

 

 


For more assistance on how to Exit A Trade Early, contact us!