td ameritrade Stop Orders

TD Ameritrade (thinkorswim) Limit and Stop Orders in 2022


Placing buy and sell limit and stop orders for stocks on TD Ameritrade website, app, thinkorswim trading platform.


Limit and Stop Orders at TD Ameritrade


With TD Ameritrade’s software, it’s possible to place trades using several order types, two of which are stop and limit orders. Here’s how to benefit from these trade choices.


Limit Orders


Limit orders, as the name suggests, put price levels on orders. A limit on the buy side puts a price ceiling on an order (the maximum you’re willing to pay for an asset); while a limit on the sell side places a price floor on an order (the minimum you’re willing to take).


Stop Orders


Stop orders also specify prices. But they work differently than limit orders. A stop price triggers a market order. When a security’s price goes through the stop (which is specified on the order ticket), a market order is generated.

A buy stop is placed above the current market price, while a sell stop is placed below the current price. Thus, stop orders are placed in the opposite fashion as limit orders. (A buy limit order is placed below the current market price, while a sell limit order is placed above the current price.)


Limit and Stop Orders on TD Ameritrade SnapTicket


SnapTicket is TD Ameritrade’s trade bar. It is always at the bottom of the screen for a quick and easy trading experience. Simply enter a ticker symbol (a company name here won’t work) in the search field and hit enter. You’ll get real-time volume, bid, ask, and last trade numbers. Expanding the ticket (with a click on the up arrow) produces the order fields.

There are several drop-down menus on SnapTicket. The one we’re really concerned with here is the Order type menu. With this menu, you’ll find all the order types available on SnapTicket.


td ameritrade limit order


If you choose limit, you’ll need to specify the limit amount in the Price field. For stop orders, there are actually two varieties on SnapTicket: stop market and stop limit. Stop market is the regular stop order discussed above. Stop limit is a little different.

With a stop limit order, you specify the stop price, and when that number is breached, a limit order (instead of a market order) is triggered. You have to specify the limit price for that triggered limit order.

The advantage of the stop limit order is that a limit order guarantees price at order execution, whereas the stop market order does not.

Remember to select buy or sell under the Action menu.


Open TD Ameritrade Account


$0 commissions + transfer fee reimbursement.

Open TD Ameritrade Account

Limit and Stop Orders on the TD Ameritrade Website


SnapTicket is rather small. If you’d rather trade on a larger web page, TD Ameritrade’s website has a user-friendly website ticket. An additional feature on the website ticket that’s not found on the trade bar is a calculator tool next to the quantity field. It is able to convert a dollar amount to the nearest share of the entered ticker symbol.

The same trade types on SnapTicket are also on the webpage ticket.


Limit and Stop Orders on thinkorswim


For a slightly more advanced trading experience, you can place orders on thinkorswim. This is the broker’s professional-level desktop software. It has many other order types besides limit and stop, but we’ll stick with these two.

To submit an order on thinkorswim, just head over to the Charts tab and enter the ticker symbol you want to trade. Here, a company name will work.

Once you have the chart pulled up, you can right click anywhere on the graph. You’ll see a pop-up menu with buy and sell options. Choose either one, and you’ll get an order ticket with a limit order. If you want to edit it, just click on the Edit button on the ticket.


thinkorswim stop order


To place a stop order, select Buy/Sell Custom and then choose either stop or stop limit for the order type.

On thinkorswim (but not the other trading platforms we’ve looked at thus far), the type of stop point can be selected. There are three choices:

Standard: The stop point is the last trade price.

Bid: As the name suggests, the stop point is simply the bid.

Mark: This is the mid-point between the current bid-ask spread. It is calculated as (ask + bid) / 2.


Limit and Stop Orders on the Mobile Apps


TD Ameritrade has two apps (a regular version and a thinkorswim app), and they both have limit and stop orders. For stop orders, the platforms offer both stop market and stop limit.

The thinkorswim app offers the same three stop types the desktop platform has. The regular mobile app does not provide stop choices.


Open TD Ameritrade Account


$0 commissions + transfer fee reimbursement.

Open TD Ameritrade Account

Remember to Practice First


TD Ameritrade offers simulated trading (called Paper Money) on both thinkorswim platforms. Because limit, stop, and stop limit orders are more complicated than simple market orders, it’s a good idea to practice these order types with a virtual currency before putting real money on the line.


About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.