We’re excited to announce that sell stop orders are now available for stocks you own individually or within a motif. Stop orders can be used to help protect gains or limit losses on your existing investments.
Rather than continuously monitor the price of stocks you own, you can now place a sell stop order to execute a trade when the price of your stock drops below a specific price you determine.
In this step-by-step guide, we’ll show you how to create a stop order for a stock you own.
To get started, navigate to your positions overview page from the dropdown menu.
By default, your positions are grouped by motifs and single stocks. Click on “Show Stock View” to see all the underlying stocks you own in a single list.
Find the stock that you want to trade. In this example we’ve chosen AGL Resources Inc. as the stock we want to place a sell stop order.
If you own the stock in multiple places – in more than one motif or individually – you will be asked to select which one you are selling. In this example, AGL Resources Inc. is held as a single stock as well as in the All American motif. Let’s trade AGL Resources Inc., the single stock.
After you click on Trade from the screen above, you’ll be taken to our new trading interface for stocks. Notice the number of shares you own is conveniently displayed.
To create the sell stop order, select Sell, enter the quantity you wish to sell (or click on Sell All) and select Stop as the order type.
Enter a stop price at which point your sell order will trigger and execute at the current market price. If the current stock price does not fall below the stop price, the sell stop order will not trigger. The stop price must be lower than the current stock price to be valid.
Finally, select the duration that the sell stop order will remain in effect. If you select Day, your sell stop order will remain open through the end of the trading day before expiring. If you place a sell stop order after market close the order will carry over to the next trading day.
You can also select Good ‘Til Canceled and your sell stop order will remain open until your order is filled, you cancel it, or 60 calendar days have passed since you created it.
On the next screen, you can preview your selections before placing your trade. Your estimated total is computed based on the stop price and not the current stock price.
Note that if you place a sell stop order for a stock held within a professional motif, your motif will become a custom motif once the order executes. In this example, we sold a single stock owned outside of a motif so there was no such effect.
If you have any questions about this new feature, contact us at 1-855-586-6843, 9:00 am – 6:00 pm ET, Mon-Fri.