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Scottrade vs e-trade vs ???
Here is what I want and it isn't obvious to me who offers what.
Let's say I buy a hundred shares of X at $10/share. I want to be able to "program" some trades so I can just relax and not have to watch every turn of the market. For example:
1) If the stock goes to $9/share just sell it all and exit that position
2) If the stock goes to $12.50/share, sell 25 shares
3) If the stock goes to $15/share, sell 25 more shares
etc
Does Scottrade or e-trade let you do things like this? Or would I have to resign myself to watching everything closely everyday?
3 replies
= new reply since forum marked as read
= new reply since forum marked as read
So let's have a look at how Investopedia defines this;
http://www.investopedia.com/terms/l/limitorder.asp
What is a 'Limit Order'
A limit order is a take-profit order placed with a bank or brokerage to buy or sell a set amount of a financial instrument at a specified price or better; because a limit order is not a market order, it may not be executed if the price set by the investor cannot be met during the period of time in which the order is left open. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.
BREAKING DOWN 'Limit Order'
While the execution of a limit order is not guaranteed, it does ensure that the investor does not miss the opportunity to buy or sell at the target price point if it is dealt in the market. Depending on the direction of the position, a limit order is sometimes referred to as a buy limit order or a sell limit order. For example, a buy limit order that stipulates the buyer is not willing to pay more than $30 per share, while a sell limit order may require the share price to be at least $30 for the sale to take place.
Stop Loss
A stop loss order is the opposite of a take profit order: It is left to ensure that a transaction does not take place at a price worse than the indicated target. It can be used to sell an existing instrument or to enter into a new transaction.
Conditional Orders
Limit orders can have specific conditions added to them. An investor may indicate that the order must be executed immediately or canceled, which is called a fill or kill (FOK) order. They may also require that all desired shares be bought or sold at the same time if the trade is to be executed, which is called an all or none order. A limit order can be paired with a stop loss order for the same amount, with the stipulation that if one of the paired order is done, the other will be called automatically. This is commonly called "one cancels the other" or OCO.
A contingent order can also be called an "if/then" order. If the first part of the order is executed, the second part becomes a live order. If the first part is not executed, the second part is never executed, even if the market trades at the indicated level.
Timing
An order usually includes an indication of how long it will remain in effect. The term "good till cancelled," abbreviated GTC, means that the order will remain in effect until the investor cancels it. It is common to have an order cancel automatically at the end of the trading day; however, in the foreign exchange market, which trades around the clock, orders can be filled 24 hours a day.
(Emphasis mine)
A limit order is a take-profit order placed with a bank or brokerage to buy or sell a set amount of a financial instrument at a specified price or better; because a limit order is not a market order, it may not be executed if the price set by the investor cannot be met during the period of time in which the order is left open. Limit orders also allow an investor to limit the length of time an order can be outstanding before being canceled.
BREAKING DOWN 'Limit Order'
While the execution of a limit order is not guaranteed, it does ensure that the investor does not miss the opportunity to buy or sell at the target price point if it is dealt in the market. Depending on the direction of the position, a limit order is sometimes referred to as a buy limit order or a sell limit order. For example, a buy limit order that stipulates the buyer is not willing to pay more than $30 per share, while a sell limit order may require the share price to be at least $30 for the sale to take place.
Stop Loss
A stop loss order is the opposite of a take profit order: It is left to ensure that a transaction does not take place at a price worse than the indicated target. It can be used to sell an existing instrument or to enter into a new transaction.
Conditional Orders
Limit orders can have specific conditions added to them. An investor may indicate that the order must be executed immediately or canceled, which is called a fill or kill (FOK) order. They may also require that all desired shares be bought or sold at the same time if the trade is to be executed, which is called an all or none order. A limit order can be paired with a stop loss order for the same amount, with the stipulation that if one of the paired order is done, the other will be called automatically. This is commonly called "one cancels the other" or OCO.
A contingent order can also be called an "if/then" order. If the first part of the order is executed, the second part becomes a live order. If the first part is not executed, the second part is never executed, even if the market trades at the indicated level.
Timing
An order usually includes an indication of how long it will remain in effect. The term "good till cancelled," abbreviated GTC, means that the order will remain in effect until the investor cancels it. It is common to have an order cancel automatically at the end of the trading day; however, in the foreign exchange market, which trades around the clock, orders can be filled 24 hours a day.
What you describe in your post is known as a "Bracketed Sell Order" coupled with an "Above the Market" request. Whether or not the broker will allow more than 2 brackets is up to them. A simple phone call to their help desk will clear that question up.
I have a Roth I use as a trading account with E*Trade. Here are two screen shots of their order ticket page. I brought up my position with AT&T and have selected "Sell" as the transaction type The first shows the drop down for "Price Type". You can see the various choices and note that "Limit" and "Stop on Quote" are the 3rd and 4th choices down.
Below is a shot of the same page with the "Term" drop box open. The only difference between this platform and the one I used at AG Edwards is the "Good for 60 Days" option, where I used to have "Good Till Canceled" which is an industry standard.
Again, this is E*Trade and other firms and online platforms may offer slightly different options, but for the most part, this is a standard Stock order ticket. Of course, Options tickets and Bond tickets have other information required so their tickets have a different format.
Hope that helps a little!
May all your trades be net gains!
