Types of Orders

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Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email.

All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject stock option trade types limit stops of the email you send will be "Fidelity. A market order instructs Fidelity to buy or sell securities for your account at the next available price.

It remains in effect only for the day, and usually results in the prompt purchase or sale of all the shares of stock, options contracts, or bonds in question, as long as the security is actively traded and market conditions permit.

In order to maintain a fair and orderly market, most market centers generally do not accept cancellation requests after 9: ET for market orders eligible for execution at 9: ET, when the market opens. Acceptance of a cancellation request by Fidelity between 9: ET does not guarantee an order cancellation. All requests to cancel an order are processed on a best-efforts basis. When you place a limit order to buy, the stock is eligible stock option trade types limit stops be purchased at or below your limit price, but never above it.

All open GTC orders will expire calendar days after they are placed. If the th day falls on a weekend or holiday, those orders will stock option trade types limit stops on the first business day following the expiration day.

This policy does not apply to options. Orders at each price level are filled in a sequence that is determined stock option trade types limit stops the rules of the various market centers; therefore, there can be no assurance that all orders at a particular price limit including yours will be filled when that price is reached. Such orders are also subject to the existence of a market for that security. Thus, the fact that your price limit was reached does not guarantee stock option trade types limit stops execution.

Limit orders for more than shares or for multiple round lots,etc. It may take more than one trading day to completely fill a multiple round lot or mixed-lot order unless the order is designated as one of the following types:. We do not accept limit orders for municipal bonds, commercial paper, unit investment trusts UITscertificates of deposit CDsor mutual funds.

Stop orders are generally used to protect a profit or to prevent further loss if the price of a security moves against you. They can also be used to establish a position in a security if it reaches a certain price threshold or to close a short position. The specialists on the various exchanges and market makers have the right to refuse stop orders under certain market conditions. Not all securities or trading sessions pre- and post-market are eligible for stop orders.

You place a time limitation on a stock trade order by selecting one of the following time-in-force types:. Day A time-in-force limitation on the execution of an order. This limitation has a default order expiration time of 4: You may select your own order expiration time between ET in thirty minute increments i. Good 'til canceled A time-in-force limitation stock option trade types limit stops can be placed on a stock or ETF order.

This limitation has a default stock option trade types limit stops expiration date of calendar days from the order entry date at 4: Fill or kill A time-in-force limitation that can be placed on the execution of an order.

This limitation requires that the order is immediately stock option trade types limit stops in its entirety or canceled. Fill or kill is only used under very special circumstances. If you do not fully understand how to use fill or kill, talk to a Fidelity representative before placing this limitation of an order.

Immediate or cancel A time-in-force limitation that can be placed on the execution of an order. This limitation requires that a broker immediately enter a bid or offer at a limit price you specify. All or a portion of the order can be executed. Any portion of the order not immediately completed is canceled.

On the open A time-in-force limitation that can be placed on an order. This limitation requires that the order is executed as close as possible to the opening price for a security.

All or any part of the order that cannot be executed at the opening price is canceled. On the close A time-in-force limitation that can be placed on the execution of an order. This limitation requires that the order is executed as close as possible to the closing price for a security. All or any part of the stock option trade types limit stops that cannot be executed at the closing price is canceled. The commission for a good 'til canceled order is assessed at the time your order is executed.

If your order receives multiple executions on a single day, you will be assessed one commission. For good 'til canceled orders that receive executions over multiple days, a commission is assessed for each day in which there is an execution. Although different exchange rules may exist for adjusting orders when a security pays a dividend, the general rule is that good 'til canceled GTC orders below the market are adjusted for the dividend amount.

The price of your order will be automatically reduced on the "ex-dividend" date by approximately the amount of the upcoming dividend unless you note it as a do not reduce DNR when you place the order. Orders below the market include: Volatile markets can present higher trading risks, especially when you are using electronic services to access information or place orders.

The chances of encountering these risks are higher for individuals using day trading strategies. In part for this reason, Fidelity does not promote day trading strategies. For more information on trading risks and how to manage them, contact Fidelity. Trailing Stop Orders adjust automatically when market conditions move in your favor, and can help protect profits stock option trade types limit stops providing downside protection.

With a Trailing Stop Order, you do not have to constantly adjust for price changes. Additionally, Trailing Stop Orders may have increased risks due to their reliance on trigger processing, market data, and other internal and external system factors. These orders are held in a separate order file with Fidelity and are not sent to the marketplace until the order conditions you've defined have been met.

Trailing Stop Order trigger values: You may elect to trigger a Trailing Stop order based on the following security market activities:. Important information regarding Trailing Stop Orders. A conditional order allows you to set order stock option trade types limit stops for stocks and options based on the price movement of stocks, indices, or options contracts.

There are five types: Short selling is an advanced trading technique that allows you to integrate a number of different strategies into your overall investment approach so that you may potentially profit from downward moves in a particular stock.

Fidelity customers with a margin agreement in place may enter short sale and buy-to-cover orders for any U. All short sale orders are subject to the availability of the stock being sold, which must be confirmed by our stock loan department prior to the order being entered.

Basket trading user agreement. There are no additional fees for basket trading. Commissions will be charged according to the commission schedule applicable to the account. Each purchase or sale of a security position in a basket is treated as an individual transaction and will be subject to separate transaction commissions.

All orders in a basket are market stock option trade types limit stops. You can attempt to cancel an individual order from the Order Details screen if an order has not executed, and re-enter a new order in basket trading.

However, use caution when entering the new order as most market orders receive an execution. Although all buy and sell orders through the basket trading product are market orders, there is the possibility that certain orders will not be executed.

For example, if a security that you are trading as part of a basket stock option trade types limit stops halted trading at the time of order entry and did not resume trading through market close, this security would not stock option trade types limit stops part of your purchased basket.

The weightings on remaining positions that were purchased will not adjust to account for the unpurchased position s. You have entered a share weighted order to purchase an security basket at shares for each position. If one of the securities did not execute, the shares that were assigned to that position will not distribute across the 10 positions that did execute, making them share orders.

The 10 positions that did execute will remain shares each. However, in all cases, unexecuted market orders will not carry over to the next trading session; they will need to be re-entered if you would like them to be part of a basket or to be removed from a basket. Baskets display unrealized net change detail for both purchased and saved baskets. Purchased baskets will display a current market value of the basket in its entirety as well as for individual positions.

Although the percent net change of a purchased basket will account stock option trade types limit stops additional purchases, liquidations, and certain corporate actions, it does not provide true tax cost basis of your positions within the basket. Securities that are liquidated entirely from a basket will not be tracked in basket detail. You can view cost detail for individual positions within a basket from the unrealized net change screen. After you construct a basket and indicate the amount you are planning to allocate to the basket, you can either place a trade for the securities in the basket or save the basket for review, tracking, or subsequent purchase.

You can save up to 20 baskets in the basket trading application. You stock option trade types limit stops continue to make adjustments to the contents of the basket before you decide to purchase it. Watch baskets display net change detail based on current market value versus market value as of the last time you saved the watch basket. Allocation weightings for baskets can be established using dollars, shares, or percentage.

If you do not select an allocation method, the default allocation will be dollars. After you purchase your basket you can buy and sell individual securities within the basket at any time.

The Basket Summary screen gives you an overview of all of your baskets. Stock option trade types limit stops name and details links provide a breakdown of securities within each basket. Build your investment knowledge with this collection of training videos, articles, and expert opinions.

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One of the ways people use these advanced strategies is the utilization of different order types. Market orders are the simplest, most intuitive order types. A market order simply means that you want the trade to be executed immediately at the best available price in the market. If the market for a particular stock, ETF, or other security is liquid, market buy orders often get executed almost immediately at or near the ask price. The advantage of a market order is speed. If you want in or out of a position immediately, a market order is the way to go.

The disadvantage of a market order is price. Depending on the size of the order and the number of available shares at the ask price, your order may not get the exact price you were hoping to get filled at.

The other most common type of order is a limit order. The advantage of limit orders is that you have complete control over the price at which a trade is executed. If the stock never reaches the limit price, the order will never get executed at all.

In a way, stop orders are almost a combination of a limit order and a market order. Much like a limit order, a stop order allows you to select a price at which the order will be triggered. However, like a market order, once the order is triggered, it is immediately fully executed at market price. Stop loss orders are sell orders with a stop price slightly below the current share price of the stock. A trailing stop order allows the trader to set a stop loss price at a certain percentage or dollar amount below the current share price.

As the stock continues to rise, the trailing stop will rise along with it, maintaining the specified spread. However, if the stock falls, the trailing stop will remain steady until it is triggered. In addition to the three most common order types mentioned above, traders can also combine order types to execute specific trading ideas.

For example, a stop limit order can allow traders to buy or sell stocks only in a particular price range. A market If Touched order is similar to a stop sell order, except it is placed above the current share price rather than below it.

These If Touched orders provide traders with another way to take advantage of large, short-lived swings in share price. So before you pull the trigger, take a second to consider which one is right for you. This article is provided for educational purposes only and is not considered to be a recommendation or endorsement of any trading strategy.

The author is not affiliated with Lightspeed Trading and the content and perspective is solely attributed to the author. Evolving at the Speed of Light. Open an Account Try a Demo.