Spreadex have introduced a new price tolerance threshold feature that aims to give clients more control when they place a trade during extreme market volatility

This means traders can set a threshold on a price change they are comfortable with when placing a trade. This threshold can be determined in either number of points or a percentage away from a target level.

Here’s how the price tolerance threshold works

The example Spreadex give on their website is this, “if you set a price tolerance of 3 points and tried to buy the UK 100 [FTSE 100] at 7541.8, this means you can still get a trade on at any point up to 7544.8 if the market moves while you are placing your trade.”

The image below shows the Spreadex deal ticket and how traders will use the new price tolerance function.

Spreadex are keen to point out that clients will still get the very best price available.

Specifying a tolerance threshold doesn’t mean the price traders will get will automatically be at the upper level. The threshold is in place as an insurance against a price jump. Using the example above, if the FTSE 100 price were to pass the threshold of 7544.8, the trade will be automatically rejected.

Michael James, Financial Room Manager at Spreadex added, “We are always looking at ways to innovate and push our product ahead of the competition, and a Price Tolerance Threshold would give our traders more control during volatile trading times. Many of our traders use this feature during non-farm payrolls where they want the trade filled quickly, or even during Trump inspired price movements.”

Clients are still able to place trades at any level regardless of extreme movement, by using the Market Order.

This will execute the trade at whatever the price is when Spreadex receive the bet request, no matter how far the price jumps and assuming you have sufficient funds to place the trade or it is not referred for any other reason.