Terms and Conditions for Stop Orders and Trailing Stop Orders Stockbrokers
These terms and conditions relate to Stop Orders and Trailing Stop Orders. You should read and understand these before using the service. These terms and conditions should be read in conjunction with the master terms and conditions for your account. Definitions Stop Price means a price set by you at which you are prepared for an order to be triggered for dealing. Limit Price means the maximum or minimum price at which you are willing to buy or sell specified shares. Setting a Limit Price effectively creates a price ceiling when you are buying and a floor when you are selling. Stop Order means an order to buy or sell specified shares but only when your Stop Price is reached or passed. Stop Order with Limit Price means a Stop Order with a further Limit Price attached which creates an acceptable zone in which you are prepared to trade. The deal will only be done if, and when, the price is within your dealing zone. Minimum Trailing Value means the minimum number of pence per share that a share price is required to fall from its peak value, for sales, or rise above its lowest value, for purchases, in order to trigger a Trailing Stop Order. Setting a Minimum Trailing Value effectively creates a price ceiling when you are selling and a floor when you are buying. Maximum Trailing Value means the maximum number of pence per share that a share price can fall from its peak value, for sales, or rise above its lowest value, for purchases, in order for a Trailing Stop Order to be dealt. Setting a Maximum Trailing Value effectively creates a price floor when you are selling and a ceiling when you are buying. Trailing Stop Order means an order to buy or sell specified shares but only when a Stop Price specified by you in relation to the share s lowest/peak price has been reached or passed. Instead of specifying a definitive Stop Price, you specify a Minimum Trailing Value, in pence per share, which creates a Trailing Stop Price that repositions itself as the share price moves. Trailing Stop Order with Limit Price means a Trailing Stop Order with a further Limit Price attached which creates an acceptable zone, relative to the share s lowest/peak price, in which you are prepared to trade. The deal will only be done if, and when, the price is within your dealing zone. Instead of specifying a definitive Limit Price, you specify a Maximum Trailing Value, in pence per share, which creates a Trailing Limit Price that repositions itself as the share price moves. About Stop Orders and Trailing Stop Orders 1. Stop Orders without a Limit Price will only be carried out if a price equal to your Stop Price has been reached or passed within the expiry period of the order and then at the best price available to us for the order size. 2. Stop Orders with a Limit Price will only be carried out if a price equal to your Stop Price has been reached or passed within the expiry period of the order and then only if the price is within your specified dealing zone as defined by your Stop and Limit Prices. 3. Trailing Stop Orders to sell without a Maximum Trailing Value will only be carried out if a price equal to the highest price of the shares after the order is placed, less your minimum trailing value, is reached or passed before expiry of the order. 4. Trailing Stop Orders to buy without a Maximum Trailing value will only be carried out if a price equal to the lowest price of the shares after the order is placed, plus your minimum trailing value, is reached or passed before expiry of the order. 5. Trailing Stop Orders to sell with a Minimum and Maximum Trailing Value will only be carried out if the price is equal to or less than the highest price of the shares after the order is placed less your minimum trailing value and equal to or greater than the highest price of the shares after the order is placed, less your maximum trailing value. 6. Trailing Stop Orders to buy with a Minimum and Maximum Trailing Value will only be carried out if the price is equal to or more than the lowest price of the shares after the order is placed plus your minimum trailing value and equal to or less than the highest price of the shares after the order is placed, plus your maximum trailing value. 2
7. It is your responsibility to confirm whether an order has been carried out and, if it has not, whether you require a new Instruction to be placed. 8. Stop Orders and Trailing Stop Orders will expire in line with your Instructions and be confirmed to you at the time of placing the order and will remain in a queue for dealing until the date specified for expiry or until the order is dealt, rejected or cancelled by you. You may place multiple instructions using the same shares. A new instruction does not cancel one already in place. 13. Stop Orders with a Limit Price or Trailing Stop Orders with a Maximum Trailing Value are designed to execute when the price of a security falls within a specified dealing zone. You should be aware that certain factors may cause the bid-offer spread of a security to increase momentarily to an unrealistically wide level, which may cause your order to trigger for dealing. We will endeavour to prevent triggering from occurring in these instances but if the order is executed, it will have met best execution rules, and we will not be liable for any resulting discrepancy in value. 9. When we accept your Stop Order or Trailing Stop Order, we will endeavour to follow your Instructions and will generally carry out orders by reference to time of receipt. However, all orders for the same stock and with the same Stop Price and Limit Price (if applicable) received outside of normal market hours will be treated as having been received at the commencement of trading the following Business Day. 10. Once a Trailing Stop Order to sell has been carried out then any new highest price achieved by the shares will have no relevance to the order i.e. we only look for the peak price after the order is placed until it is dealt, rejected, cancelled or expired. 11. Once a Trailing Stop Order to buy has been carried out then any new lowest price achieved by the shares will have no relevance to the order i.e. we only look for the lowest price after the order is placed until it is dealt, rejected, cancelled or expired. 12. Stop and Trailing Stop Orders are designed to execute when the price of a security falls below or rises above a Stop Price. You should be aware that certain factors may cause the bid-offer spread of a security to increase momentarily to an unrealistically wide level, which may cause your order to trigger for dealing. We will endeavour to prevent triggering from occurring in these instances but if the order is executed, it will have met best execution rules, and we will not be liable for any resulting discrepancy in value. 14. For Stop Orders with a Limit Price and Trailing Stop Orders with a Maximum Trailing Value should the price move through your dealing zone then the order will be retained for the remainder of the expiry period. It will then be dealt only if, and when, the price enters your dealing zone. 15. A Sell All Instruction will result in all shares owned in a security being sold. This type of Instruction will take into account any pending order for the same stock irrespective of order type and include withdrawals or lodgments of stock since the original Stop or Trailing Stop Order was placed. 16. Once you have placed your Stop Order or Trailing Stop Order you may be able to cancel or amend your Instructions, as long as the order has not been carried out or is not in the process of being executed and we accept the cancellation or amendment. If you amend your order it will be dealt according to the time of receipt of these new Instructions. Placing Stop Orders and Trailing Stop Orders 17. Stop and Trailing Stop Orders can only be placed on FTSE 350 stocks. However, we reserve the right to amend the range of stocks which are available for dealing. 18. Stop and Trailing Stop Orders can be placed for a monitoring period of up to a maximum of 30 Business Days and will always expire at the close of trading on the last day of the expiry period. 3
4 19. You can normally use the Service at the times specified in our literature and on our website. Routine maintenance, demand on the systems, and other circumstances beyond our control may mean that this is not always possible. 20. Instructions can only be processed during normal market hours even though the Service may be available outside these hours. This means that your Instructions may not always be processed as soon as we receive them. 21. There is no minimum monetary value required when placing a Stop or Trailing Stop Orders to buy and the maximum value allowed when placing an order will be determined by your amount Available to Invest. 22. For Stop and Trailing Stop Orders to sell you will need to have the number of shares available in your portfolio at the time of placement, even if there are other outstanding order instructions set on the same shares. The total value of the order must at least cover commission and charges at the time of dealing. 23. To ensure purchase orders placed can be dealt, when the order is placed funds will be ringfenced to cover settlement and will not be available for other orders, or for withdrawal, unless the Stop/Trailing Stop Order is cancelled and your amount Available to Invest will be adjusted accordingly. 24. To ensure sale orders placed can be settled, if dealt, when the order is triggered for dealing it is validated against your current stock holding. If there are insufficient shares available to settle the order at the time validation takes place, due to other orders of the same or different type being dealt since your order was placed, then your Stop/Trailing Stop Order may not be dealt. 25. We will record the date and time that you place an Instruction and all relevant price movements between when the order is placed and when it is dealt, rejected, cancelled or expires. These records will be conclusive when determining whether a Stop or Trailing Stop Order should be dealt. 26. We will ask you some security questions when you deal by telephone, and we may refuse to deal for you if you cannot answer them correctly. We may also refuse to buy or sell if you have gone over your dealing limit, which is set at our discretion, or if you owe us money from a previous deal, or for any other reason we deem justifiable in the circumstances. 27. We will not accept your Instructions to deal by fax or e-mail or any form of communication through the Internet other than through the dealing section of our website. 28. We will treat any orders placed by a User as being placed by you. You are responsible for ensuring that any Users who have access to your account have read and understood these terms and conditions. Risk warnings 29. Your Stop or Trailing Stop Order to sell may trigger when the LSE quoted price matches your Stop Price or the highest price minus your minimum trailing value. However, as we will generally obtain an improved price from the market, the order may be dealt at a better price than the LSE price. 30. Your Stop or Trailing Stop Order to buy may trigger when the LSE quoted price matches your Stop Price or the lowest price plus your minimum trailing value. However, as we will generally obtain an improved price from the market, the order may be dealt at a better price than the LSE price. 31. If your order is deemed to be outside the normal market size for the security we may not act upon your Instruction, in which case, we will attempt to contact you using the details you have supplied. 32. If you place a Stop or Trailing Stop Order in a stock and the stock subsequently becomes subject to a corporate action or dealing suspension, we may, but will not be obliged to, cancel any pending Stop and Trailing Stop Orders.
33. If you place a Stop or Trailing Stop Order and your Account is subsequently suspended, we may but will not be obliged to cancel any pending Stop and Trailing Stop Orders. 34. If, after an order is placed on your behalf with the Market and we are asked by the Market to cancel any dealings in the relevant stock, we will not be liable for any loss that you may incur. 36. If we think you may not have authorised an Instruction, we will try to verify this with you. We may refuse to act on it or take steps to reverse it. We will not be responsible for loss to you as long as we have acted reasonably. 37. We reserve the right to withdraw the facility to place Stop Orders and Trailing Stop Orders through our website. 35. Please note that demand for the Service and market conditions may fluctuate. We cannot accept any responsibility for any actual or potential financial loss or expense you incur if for any reason (other than our negligence) there is a delay or change in market conditions before execution of your order is complete. This may include periods where LSE declare a fast market. During this period, market prices are indicative and cannot be guaranteed. Liability 38. The Stop and Trailing Stop Order Service is offered to customers on a strictly best endeavours basis. We will not be liable for any failure to execute an Instruction for technical or operational reasons, save for negligence on our part. 5
Barclays offers wealth and investment management products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Stockbrokers is a trading name of Barclays Bank PLC (Registered No. 1026167 Registered VAT No. 243 8522 62) which is a member of the London Stock Exchange and ISDX. Barclays Bank PLC is registered in England and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The registered address is 1 Churchill Place, London E14 5HP. Item ref: IBIM3621. November 2014