Basic Orders
A stop limit order authorizes a trade when the stock reaches a stop price, but because you set a limit above or below that stop, it also guarantees that you will not pay more or sell for less than the limit price. Whenever the bid price (sell orders) or ask price (buy orders) reaches or surpasses the stop price, the stop order becomes a market order.In this situation, although you protect yourself against a rapid price change, there is still some risk that your order won't be filled if trading is extremely active.
The primary purpose of a stop limit order is to give the trader more control over where the order should be filled. The downside, as with all limit orders, is that the trade will not be executed if the stock does not reach the limit price. This type of orders can be placed GTC (Good til Cancelled), but they cannot be placed AON (All or None).
Stop limit orders are used by some investors to buy a stock when it reaches a certain price, allowing the investor to buy when the stock has upward momentum behind it.
These types of orders also may be placed with special instructions, like GTC (Good til Cancelled) and GTD (Good til Date).
-
GTC - A GTC order will remain active until it is filled, cancelled by you, or no action has been taken by the last day of the month following the month of order entry. For example, a GTC order placed on March 15 will expire on April 30 at Scottrade.
-
GTD - A GTD order will remain active until a specified date and a specified time chosen by you.
-
Day Order - A day order will expire at the end of the trading day, if it's not executed before market close.
Any order submitted outside of market hours for regular session trading will queue until the next business day.
| Scottrade Trading Site: Stop Limit Orders |
| Scottrade Trading Site: Opening An Account |
| Advance Your Trading - Scottrader Streaming Quotes | 2/14/11 |
| Intermediate Options | 2/15/11 |
| Introduction to Technical Analysis | 2/15/11 |
With more than 500 branch offices nationwide, Scottrade offers live events in neighborhoods all over the country. Visit your local Scottrade office for a cozy small-group Branch Seminar, or get together with Scottrade customers from your area at our popular User Summits.
Browse All Live Events >Stream live, interactive presentations right to your computer! Check back every week for new Live Webinars on a variety of topics including:
- Market analysis
- Basic & advanced orders
- Research tools
Education meets interaction in the Scottrade Community. Join Scottrade customers from all over the country as you exchange information, ideas and trading strategies in a comfortable online learning environment.
Interact with Scottrade customers and product specialists. Share your thoughts and learn from others. Grow as an investor. Join our community today!
Learn More About the Community >Brokerage Products and Services offered by Scottrade, Inc. - Member FINRA and SIPC
Online market and limit stock trades are just $7 for stocks priced $1 and above.
Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this Web site should be considered a recommendation or None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.
Margin trading involves interest charges and risks, including the potential to lose more than deposited, or the need to deposit additional collateral in a falling market. Margin Disclosure Statement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, and by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Supporting documentation for any claims will be supplied upon request.
Market volatility, volume, and system availability may impact account access and trade execution.
Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.