Understanding Stop Loss Order Instructions Fidelity

At Fidelity, a stop loss order is a type of order that allows you to limit your losses if a stock's price moves against you. This order is designed to automatically sell a stock when it reaches a certain price.

To place a stop loss order at Fidelity, you can log in to your account and access the "Trade" tab. From there, you can select the stock you want to place a stop loss order for and choose the type of order you want to place.

A stop loss order can be placed at or below the current market price of the stock. For example, if a stock is currently trading at $50, you can place a stop loss order at $45 to limit your losses if the stock's price falls.

A sound exit strategy can help you take profits, minimize your risk, and control your emotions.

There are several types of orders you can use to set your exit strategy.

A market order is the fastest way to exit an investment, but it doesn't guarantee the price you'll get.

A limit order sets the minimum price at which you're willing to sell an investment, but it's not guaranteed to be filled.

A stop loss order allows you to place a target price on the downside that you wish to sell at, but it won't protect you from sudden price drops, known as gaps.

A stop limit order acts similar to a stop loss, but it sends a limit order rather than a market order to execute your trade.

There are several types of orders to choose from, each with its own benefits and risks.

A conditional order, also known as a bracket order, allows you to have both a limit order and a stop order open at the same time, which can help you lock in your potential profits and stop your losses.

Order types are a crucial part of setting a stop loss order on Fidelity. A market order is the fastest way to exit an investment, but it doesn't guarantee the price.

You can also use a limit order to set the minimum price at which you're willing to sell an investment. This order is not guaranteed to be filled, but the price it executes at is guaranteed.

A stop loss order allows you to place a target price on the downside that you wish to sell at. When that price hits, your order converts to a market order and you'll trade at the next available price.

A stop limit order is similar to a stop loss, but it sends a limit order rather than a market order. However, execution on limit orders is not guaranteed, so there's a chance the security may never reach your limit price.

Here's a breakdown of the different order types:

A contingent order can also trigger an equity order based on various trigger values, such as the last trade, bid, ask, or volume. This can be used in conjunction with a stop loss order to set a more complex exit strategy.

Stop Loss Orders can be 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.

A stop loss order allows you to place a target price on the downside that you wish to sell at. When that price hits, your order converts to a market order and you’ll trade at the next available price. Stop loss orders are not always accepted, and specialists on the exchanges and market makers have the right to refuse them under certain market conditions.

You can use a stop limit order, which is similar to a stop loss but sends a limit order rather than a market order to execute your trade once a trigger price is reached. However, execution on limit orders is not guaranteed, so there is a chance the security may never reach your limit price and execute the order.

Here are the key characteristics of stop loss orders:

Orders are a crucial part of trading, and understanding the different types can help you make informed decisions. A stop order, for example, is used to buy or sell a stock after it has reached a certain price level.

A stop order to buy is placed above the current market price, while a sell stop order is placed below it. This helps protect profits or limit potential losses. You can also use stop limit orders, which become a limit order when the stock is offered at or higher than the specified stop price.

Stop orders are not always accepted, and some market makers may refuse them under certain market conditions. Not all securities are eligible for stop orders, so it's essential to check the specific requirements.

To manage your portfolio effectively, it's vital to have an exit strategy in place. This plan should outline how long you intend to be in the investment, what you'll use to measure performance, and how you'll know when it's time to get out.

Here are some common types of orders:

Having an exit strategy can help you take your profits and stop your losses. It's essential whether you're an active trader or a passive investor, and it can help you manage your emotions and make better trading decisions.

A stop loss order is a crucial tool for any investor, but have you ever wondered how it's executed and filled? A stop loss order becomes a market order when the stop price is triggered, which means it's filled at the next available price(s).

Company news or market conditions can significantly affect the price of a security, preventing a stop loss order from being executed at the intended price. This is why it's essential to understand the execution process.

A stop loss order is not guaranteed to be filled at the stop price, and the execution price can be dramatically different. For example, if a stock is quoted at 85 Bid and 85.75 Ask, a sell stop loss order placed at 83 may be triggered at 83, but the market order is filled at the next available price(s), which could be lower than 83.

Not all securities are eligible for stop orders, and the specialists on the various exchanges and market makers have the right to refuse stop orders under certain market conditions. This means that even if you place a stop loss order, it may not be executed as intended.

Here's a summary of the possible execution scenarios for a stop loss order:

Understanding how stop loss orders are executed and filled is crucial for any investor. By knowing the possible execution scenarios, you can make informed decisions and minimize potential losses.

A limit order is a type of order that allows you to buy or sell a security at a specific price or better. This means that if the market price reaches your limit price, your order will be executed.

Limit orders are not guaranteed to be filled, as the price may never reach your limit price. However, if your limit order is executed, the price it executes at is guaranteed.

You can use a limit order in conjunction with a stop loss order to create a stop limit order, which becomes a limit order when the stop price is reached. This can help you limit your losses or lock in profits.

Here's a summary of the different types of limit orders:

Remember, a 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. Execution on limit orders is not guaranteed, so there is a chance the security may never reach your limit price and execute the order.

Contingent orders allow you to trigger an equity order based on specific criteria, such as the last trade price or 52-week high.

You can choose from 8 trigger values for the stock, including last trade, bid, ask, volume, change % up, change % down, 52-week high, and 52-week low.

Contingent orders can be used with market, limit, stop loss, and trailing stop loss order types.

Security type: Stocks and ETFs.

Time-in-force: For the contingent criteria and for the triggered order, it can be for the day, or good 'til canceled (GTC).

A contingent order can be triggered by a single criterion, such as the stock's last trade price reaching a certain level.

Here are some common uses for contingent orders:

A contingent order can be established with the following information:

Index values are updated frequently, but the exact timing may vary depending on the exchange or market.

You can place time constraints on your contingent order, such as setting a specific expiration date or time.

To cancel a contingent order, you can follow these steps:

1. Log in to your online trading account

2. Navigate to the "Orders" or "Positions" section

3. Find the contingent order you want to cancel

4. Click the "Cancel" button to remove the contingent criteria

Note: Cancellation of the linked order happens on a "best efforts" basis.

Having a solid exit strategy is crucial for managing your portfolio and minimizing losses. A market order is the fastest way to exit an investment, but it doesn't guarantee a specific price.

You can use a limit order to set a minimum price at which you're willing to sell an investment. This order is not guaranteed to be filled, but the price it executes at is guaranteed.

A stop loss order allows you to place a target price on the downside that you wish to sell at, but it won't protect you from sudden price drops, known as gaps.

A stop limit order sends a limit order rather than a market order to execute your trade once a trigger price is reached, but execution on limit orders is not guaranteed.

You can also use a conditional order, also known as a bracket order, to lock in your potential profits if a limit is reached and stop your losses if the stop is triggered.

Here are some common types of orders and their descriptions: