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When you place a stock trade, you can set conditions on how the order is executed, as well as price restrictions and time limitation on the execution of the order.
You place a price restriction on a stock trade order by selecting one of the following order types:
When you place a market order, you ask Fidelity to buy or sell securities for your account at the next available price. A market order remains in effect only for the day, and usually results in the prompt purchase or sale of all the shares in question, as long as the security is actively traded and market conditions permit.
You should use caution when placing market orders, because the price of securities may change sharply during the trading day or after hours. During periods of heavy trading or volatility, real-time quotes may not reflect current market prices or quotes. Carefully review the order information and quote provided on the Trade Stocks Verification page before sending your order to the marketplace.
If you have limited assets to pay for a transaction, you may wish to consider placing a limit order. If you cannot pay for a transaction, Fidelity may be required to liquidate account assets at your risk.
You cannot place restrictions on the execution of a market order.
When you place a limit order to buy, the stock is eligible to be purchased at or below your limit price, but never above it. When you place a limit order to sell, the stock is eligible to be sold at or above your limit price, but never below it. Although a limit order enables you to specify a price limit, it does not guarantee that your order will be executed. You should monitor your orders when the new issue starts to trade in the secondary market.
For buy limit orders in which your limit price is below the last trade price or sell limit orders in which your limit price is above the last trade price, your limit price can be no more than 30% away from the last trade. Certain marketplaces may cancel limit orders which are more than 30% away from the last trade. For a stock, you enter the limit price in increments of .01 (one cent).
Except for short sales, you can place limit orders for the day on which they are entered (a day order), or for an open-ended period that ends when the order is executed or when you cancel (an open order or good 'til canceled (GTC) order). You can place limit orders for the day only for short sales.
If you place a limit order with a time-in-force of day and the limit you specify is not reached during the current session, the order is canceled.
Yes, all open GTC and GTX orders expire 120 calendar days after they are placed. If the 120th day falls on a weekend or holiday, such orders expire before the market opens on the first business day following the expiration day.
Limit orders for more than 100 shares or for multiple round lots (200, 300, 400, etc) may be filled completely or in part until completed. It may take more than one trading day to completely fill a multiple round lot order unless the order is designated as all or none, immediate or cancel, or fill or kill.
Although a limit or order lets you specify a price limit, it doesn’t guarantee that your order will be executed. Orders at each price level are filled in a sequence determined by the rules of the various exchanges; therefore, there can be no assurance that all orders at a particular price limit (including yours) will be filled when that price is reached.
After the limit price is triggered, the security's price may continue to rise or fall. As a result, your order may or may not execute depending if the security's price in relation to your specified limit price is too great. Bear in mind that your order may execute at a price more or less than your specified limit price. Limit orders are also subject to the existence of a market for that security.
Stop orders are used to buy and sell after a stock has reached a certain price level. A buy stop order is placed above the current market price, and a sell stop order is placed below the current price (to protect a profit or limit a potential loss).
For listed securities, a stop order to buy becomes a market order when a trade occurs at or above the stop price. A stop order to sell becomes a market order when a trade in the security occurs at or below the stop price.
For over the counter (OTC) securities, a stop limit order to buy becomes a limit order, and a stop loss order to buy becomes a market order, when the stock is offered (National Best Offer quotation) at or higher than the specified stop price. A stop limit order to sell becomes a limit order, and a stop loss order to sell becomes a market order, when the stock is bid (National Best Bid quotation) at or lower than the specified stop price. Note, however, that some market makers may apply the guidelines for listed security stop orders to OTC securities. Further information regarding specific transactions is available upon written request.
Stop orders are not always accepted. The specialists on the various exchanges and market makers have the right to refuse stop orders under certain market conditions. Not all securities are eligible for stop orders.
On open limit orders to buy and open stop limit orders to sell listed stocks, the limit price is automatically reduced on the "ex-dividend" date by approximately the amount of the upcoming dividend, unless you specify the do not reduce condition when you place the order.
Company news or market conditions which significantly affect the price of a security could prevent a stop limit order from being executed if the price of the security moves through your stop limit price.
For example, a stock is quoted at 85 Bid and 85.75 Ask. A sell stop limit order for a listed security placed at 83 is triggered at 83, at which point the order becomes a limit order. The stock would have to trade at 83 again for the sell stop limit order to be considered for execution at 83 or better. If the trigger price of 83 is reached, but the stock price continues to fall below 83, the order is not considered for execution.
Like any limit order, a stop limit order may be filled in whole, in part, or not at all, depending on the number of shares available for sale or purchase at the time. The specialists on the various exchanges and market makers have the right to refuse the orders under certain market conditions. Not all securities are eligible for stop orders.
A stop limit order automatically becomes a limit order when the stop limit price is reached. Like any limit order, a stop limit order may be filled in whole, in part, or not at all, depending on the number of shares available for sale or purchase at the time.
No. Company news or market conditions which significantly affect the price of a security could result in the execution of a stop loss order at a price dramatically different from your stop loss price.
For example, a stock is quoted at 85 Bid and 85.75 Ask. A sell stop loss order for a listed security placed at 83 is triggered at 83, at which point the order becomes a market order. The market order is filled at the next available price(s), which could be lower than 83.
Trailing stop loss and limit orders are available on all listed and OTC securities. For listed securities, the trigger is based off the last trade, regardless of whether it is a buy or a sell order. For OTC securities, the trigger is based off the bid for a sell and the ask for a buy. You can enter trailing stop orders as either day or good ‘til canceled.
You place a time limitation on a stock trade order by selecting one of the following time-in-force types:
If you place a day order during the standard market session, the order is good until the current day's market close (4 p.m. ET). If you place a day order after the close of trading, the order is good until the close of the next trading day. If you place a limit order with a time-in-force of day during an extended hours session, the order is good until the session ends.
Good ‘til canceled orders are generally good for 120 days. If the order is not executed after 120 days, the order is automatically cancelled. Some plans have been granted the ability to place GTC orders without a time limit. These orders remain in effect until the order executes, or until plan rules require the order to be cancelled.
You cannot specify good ‘til canceled when selling short.
Fill or kill orders are either immediately completed in their entirety or canceled. They are good only for the current day.
You can place fill or kill orders only during market hours on orders of 101 shares or more. You cannot specify fill or kill on stop orders, or when selling short.
If you do not fully understand how to use fill or kill, call a Fidelity representative at 800-544-6666 before using this time limitation.
You can place immediate or cancel orders during the standard market or extended hours sessions. During the standard market session, the minimum quantity for immediate or cancel orders is more than one round lot of shares (more than 100 shares). During extended hours sessions, the minimum quantity for immediate or cancel orders is 200 shares, up to a maximum of 5,000 shares You cannot use Immedate or Cancel with stop orders.
You can place on on the open orders for a minimum of 100 shares before 9:15 a.m. ET when the markets are open. Nasdaq does not accept on the open orders. You cannot specify on the open on stop orders, or when selling short.
You can place on the close orders for a minimum of 100 shares before 3:40 p.m. ET. Nasdaq does not accept on the close orders. You cannot specify on the close on stop orders, or when selling short.
If you do not fully understand how to use on the open or on the close, call a Fidelity representative at 800-544-6666 before using this time limitation.
You place conditions on a stock trade order by selecting one of the following:
Some securities may require a minimum of two round lots (generally, one round lot is 100 shares) when placing an order with the all or none condition. Please review your order or call a Fidelity representative at 800-544-6666.
All or none orders are allowed for most equity securities, and are allowed for thinly traded securities (securities for which there are few bids to buy or sell). Note that all or none orders are the lowest priority orders on the market floor because of the restrictions that they bear.
Placing an all or none condition on an order ensures that all shares in your order are executed at the same time. Without all or none, your shares may execute in more than one transaction (e.g., 400 of 1000 shares are executed as part of a partial order execution and, and the remaining 600 shares are executed later and possibly at a different price).
All or none/do not reduce orders are allowed for most equity securities, and are allowed for thinly traded securities (securities for which there are few bids to buy or sell). You cannot use AON/DNR when selling short. Note that all or none orders are the lowest priority orders on the market floor because of the restrictions that they bear.