- Order Type
- Market: An order to buy or sell securities at the next available/prevailing "market price." The intent of a market order is to trade quickly, without certainty as to price.
- Limit: An order to buy or sell securities at a stated price or better. Limit orders help control the price at which an order is executed. For a buy limit order, the order is to buy at a stated price or less. For a sell limit order, the order is to sell at a stated price or greater.
- Stop: (also called a Stop Loss order): A market order to buy or sell a security, triggered only if the security reaches or surpasses a stated price (called the "stop" price). If a stop order is triggered, the resulting market order executes at the next available market price. Stop orders can serve to lock in gains or minimize losses.
- Stop Limit: An order, which combines the trigger function of a stop order with the price control of a limit order. If the stop price is reached, a limit order is triggered to buy or sell at the stop price or better (the stop and limit price are the same). Stop limit orders can help to mitigate the price uncertainty associated with stop orders.
- Important Information about Stop and Stop Limit Orders:
- Buy stop orders and buy stop limit orders must be entered at a price above the current market price.
- Sell stop orders and sell stop limit orders must be entered at a price below the current market price.
- Trailing Stop Orders (Four Types): A buy or sell stop or stop limit order for which the trigger price automatically trails (adjusts) to follow current prices for a security. Trailing stop trigger prices are only adjusted for favorable price changes. If a security's price moves unfavorably and reaches the stop price, a market or limit order is triggered.
- For buy trailing stop orders, the trigger price decreases as the price of the security decreases.
- For sell trailing stop orders, the trigger price increases as the price of the security increases.
- Depending on security type (discussed below), the following four types of trailing stop orders may be selected:
- Trailing Stop Loss ($) sets a stop order at a designated dollar amount away from the Last, Bid, or Ask price of a security. If the stop price is reached, a market order is triggered.
- Trailing Stop Loss (%) sets a stop order at a designated percentage of the Last, Bid, or Ask price of a security. If the stop percentage is reached, a market order is triggered.
- Trailing Stop Limit ($) sets a stop limit order at a designated dollar amount away from the Last, Bid, or Ask price of a security. If the stop price is reached, a limit order is triggered to buy or sell at the stop price or better (the stop and limit price are the same).
- Trailing Stop Limit (%) sets a stop order at a designated percentage of the Last, Bid, or Ask price of a security. If the stop price is reached, a limit order is triggered to buy or sell at the stop price or better (the stop and limit price are the same).
- Important information about Trailing Stop orders:
- Trailing stop orders for equity securities (stocks) can be entered as a dollar amount ($) or percentage (%) of the Last, Bid, or Ask prices of an equity.
- Trailing stop orders for options can be entered only as a dollar amount ($) of the Last, Bid, or Ask prices of an option.
- Dollar trail amounts can be entered to two decimal places.
- Percentage trail amounts must be entered in whole percentages.
- The following securities are not eligible for trailing stop orders: bulletin board, pink sheet, mutual funds, and fixed income securities.
- Trailing Stop orders are monitored between 9:30 a.m. and 4 p.m. ET and are held on a separate order file until triggered, at which time they are sent to the marketplace. Orders can be triggered based on the security's last round lot trade of 100 shares or greater, Bid, or Ask, but may have increased risks due to their reliance on trigger processing, market data and other internal and external system factors.