Last Friday I tried to short the USD/JPY with a limit order (97.40) when the price was at 97.30 and here is the message I got in return, see screenshot below: http://img96.imageshack.us/img96/3548/5n26.jpg
Why is the system warning me? This is a simple sell on a limit order, where is the problem?
You tried to sell at a limit price, but the market was beyond the limit. Often this indicates people are mixing up stops and limits, or buys and sells, so as a courtesy (and to avoid expensive mistakes) C2 notifies you of the possible problem. You can still continue with the order, but it will be filled at the market price, not the limit. (Because of course you want to get the best price possible, not just the limit price you set.)
Thanks for your reply Matthew.
The trading safeguards you installed on the trading platform are certainly very helpful but If you look closely at the screen shot you will notice that when I tried to place the sell on a limit order, the market price for the USD/JPY was 97.30, while my limit short order was located 10 pips above that price (97.40). In fact it took quite a while for the Yen to reach 97.40.
So why is this price marketable according to the C2 platform?
It’s not very important as far as trading is concerned, just something to keep in mind in case it is a minor bug of some sort.