P&L Action: Stop Loss REL Order

1. Overview

A REL Order (Relative Order) is a dynamic order type that automatically adjusts the limit price relative to the current bid or ask price. In OptionsApp, it can be activated at the Leg, Group, or Combo level.
Important: Technically, the REL Order is always executed only on individual Legs. The higher levels merely control the behavior during automatic stop switches.

You can find a detailed description of the REL Order here: What is a REL Order?

2. Application at Leg Level

When a REL Order is applied directly to a Leg, it's a dynamic limit order that continuously tracks the market price. The limit price is automatically set relative to the current bid or ask value. For buy orders at Bid + Offset, for sell orders at Ask - Offset.
The defined offset remains constant while the order automatically adjusts with each market price change. This keeps the order always close to the fair market price and can lead to better executions without requiring manual adjustments.
This variant is ideal when individual Legs should be traded independently or provided with separate stops. It's used especially for independent Legs within complex strategies where each Leg is managed individually.

3. Application at Group and Combo Level

When the REL Order is set on a Group or Combo, it doesn't mean the entire Group is traded dynamically via REL logic. Rather, this setting serves as a pre-configuration in case the stop needs to be switched to individual Legs later.

4. Practical Example

Example: Vertical Spread (Short Put 6000 / Long Put 5970)

• REL Order is activated at Group level.
• The price of the Long Put runs to $0.00 during runtime.
• The stop automatically switches to the Short Put.
• The order type changes from Stop Market to REL.