Fidelity Trailing Stop Order

Fidelity Trailing Stop, Stop Limit Loss, Bracket Order Types


Fidelity (Active Trader Pro) order types - market, limit, stop, Fill or Kill (FOK), Immediate or Cancel (IOC), contingent, One triggers the other (OTO) orders - differences explained for 2022.


Fidelity Order Types Explained


You probably already know that investors at Fidelity are fortunate to have access to a wide selection of securities. Mutual funds, OTCBB stocks, ETFs, stocks, international stocks, ETPs, IPOs, ADRs, bonds, and forex are all a part of the diverse range of assets available at Fidelity.

No matter what asset class you are interested in trading, knowing the available order types can help you make the most of the opportunities on the table.

We’ve gone through the order types available at Fidelity for your convenience. Keep reading for a summary of each.


List of Order Types at Fidelity


The following order types are all available at Fidelity:

  • Market Orders
  • Limit Orders
  • Stop Orders
  • Fill or Kill (FOK) Orders
  • Good ‘till Cancelled (GTC) Orders
  • Immediate or Cancel (IOC) Orders
  • All or None (AON) Orders
  • Contingent Orders
  • Multi-contingent Orders
  • One triggers the other (OTO)
  • One cancels the other (OCO)
  • One triggers a one cancels the other (OTOCO)


Fidelity Asset Selection


Fidelity Basic Order Types


Here, you will find descriptions for each of the available order types at Fidelity.

To understand the more advanced order types available at Fidelity, there are some key concepts to understand. All the other order types are based on a few basic order types and conditions.


Fidelity Order Ticket


Fidelity Market Orders


Market orders are arguably the most common order type there is. Put simply, placing a market order tells the exchange to fill the order at the best ‘current’ price. The best price may be the ask, the bid, the last price traded, or the mid-price. Market orders fill very quickly and are good for investors looking to get into and out of positions in a hurry.


Fidelity Limit Orders


Limit orders are also quite popular with investors. Limit orders tell the exchange to fill an order at a specific price. These types of orders may fill quickly (assuming the defined buy/sell price is near the ‘current’ price of a security) but can also sit in the market for extended periods of time, waiting for price to come to the price limit defined in the order.

These types of orders are good for investors looking for accuracy in the prices and fills they receive.


Fidelity Stop Orders


Stop orders come in a few different forms, but they all play a similar role. Stop orders are placed below long positions and above short positions, and they are used to protect you from price moving against your position.

There are stop market orders, stop limit orders, and trailing stops. Stop market orders sit in the market and wait for price to come to them. When triggered, a market order is sent to close the position. Stop limit orders are similar, however, it is a limit order for a specified price that is sent to close the position. Trailing stops follow the high-water mark of a position by a pre-defined dollar amount or percentage.


Considerations for Market and Limit Orders


Both market orders and limit orders are beneficial, but there are some factors to consider.

Market orders are best used with markets with narrow spreads and high liquidity. They are also ideal for erratic market conditions like gaps, limit up/down days, fast markets, and for ensuring fills. Despite the benefits, however, many investors shy away from market orders because of issues with poor fills and slippage.

In contrast, limit orders are great for reducing slippage and for guaranteeing fill prices. However, it is possible for markets to ‘trade though’ limit orders leaving orders either unfilled or only partially filled. This can be a problem for anyone looking to get into a security at a specific price. It can also cause problems with stop loss orders.


Order Type Modifiers


To mitigate some of the limitations of limit orders, it is possible to place some modifiers on limit orders to gain more control. Since there is always a risk that limit orders will not fill as desired, assigning some rules for the trade execution can be helpful.


Fidelity Order Ticket Modifiers


Fill or Kill (FOK) orders are used by investors to get a fill for an order immediately or not at all.

Good ‘till Cancelled (GTC) orders stay active in the market, at the specified price, across trading sessions (up to 180 days). These types of orders can fill partial positions over time, until the entire position has been executed.

Immediate or Cancel (IOC) orders are used to get a fill on any available shares/contracts of a security immediately. Any remaining shares/contracts that were not immediately filled at the desired price are cancelled.

All or None (AON) orders, like FOK orders, are used to either fill an entire order or none of it.


Fidelity Comparison


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Margin
Rate
Maintenance
Fee
Annual IRA
Fee
TD Ameritrade $0 $49.99 ($0 to sell) 11% $0 $0
WeBull $0 na 6.99% $0 $0
Firstrade $0 $0 9.5% $0 $0
Fidelity $0 $49.95 9.825% $0 $0


Conditional Orders at Fidelity


Also available are conditional orders that allow traders to enter several orders into the market at the same time. There are numerous types of conditional orders available at Fidelity.

One Triggers the Other (OTO) orders are used to place limit orders into the market with the thought that a security will trade up or down to the price specified in the order. When price does meet your limit price to open a position, a second order is placed (usually a stop loss) into the market as a live order.

One Cancels the Other (OCO) orders can be placed as brackets around a position. Usually, this order type is used for a take profit/stop loss bracket. The first limit order to meet with price will fill and the other is cancelled.

One Triggers a One Cancels the Other (OTOCO) orders are a combination of OTO and OCO orders. A limit order to either buy or sell a security can be placed in the market to wait for price to meet it. At the same time, two more orders are placed but remain inactive until the initial position is activated and filled.


Contingent Orders


Finally, Fidelity also has something called Contingent Orders. These order types allow investors to open or close positions based on certain predefined criteria. The criteria that you can set to trigger an order include, last price, bid, ask, % change (up or down), 52-week high/low, and volume.


Ben Wright
About the Author
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.