Are you looking to set up a stop order? Then you've come to the right place.

Setting up a Stop Order Video

 

Are you looking for a specific part of the video? No need to blindly fast-forward! The video above goes over how to set up stop orders on all three platforms. You may watch the video in its entirety to learn how to set up stops in all of our platforms or if you’re looking for a specific platform then the timestamps are listed below.
  • 0:41 - Desktop Platform
  • 1:47 - Web Browser Platform
  • 2:53 - Mobile Platform
We all manage positions differently. Whether you’re a trader who makes frequent use of stop orders and would like to know more or just someone who’s wondering what the heck they are, this is the article for you! 


Intro to Stop Limit and Stop Market Orders

Stop Limit Order

A stop limit order allows you to indicate a “stop price” and a “limit price”. The stop price will act as a flip-switch, and once the underlying security hits the stop price, the switch is flipped, which triggers the entry of a limit order. A stop price to sell is triggered when the security is at or dips below the stop price. A stop price to buy will be triggered when the security is at or rises above the stop price. You will be filled at your specified limit price or better. When entering a stop limit order, the limit price can be the same as the stop price. That said, stop limit orders do not guarantee a fill since your order may remain resting if there is a gap up or gap down since your limit order could be away from the market.


Stop Market Order

A stop market order allows you to exit a position if the stop price is breached. When you select a stop market, all you need to enter is a stop price since a market order is immediately executed when the stop price is met or breached. As a result, a stop market fill price is unknown since the order will hit the next bid when selling to close or the next ask when buying to close. Although your order is executed you may get an unfavorable fill if price movement was due to a “knee-jerk” reaction. Furthermore, futures orders are subject to CME's Market Order with Protection handling. As a result, stop market orders on futures have the potential to not fill if the underlying moves outside the protection price limit zone. To learn more about CME's Market Order with Protection, please click here.


If you are seeking an order type that can help protect your gains or prevent additional losses, stop orders can be an excellent addition to your trading repertoire. Please remember to select a Time-In-Force (TIF) for your stop order. Your TIF options include placing a Day, GTC, or GTD order for equity and equity options. However, at this time futures may only use Day orders. Selecting a TIF will maintain the stop in accordance with your TIF selection. For more information on GTC and GTD orders, please click here.


Current Limitations

Stop orders are not supported when trading a credit or debit spread. Additionally, stop orders are not supported during the pre-market and after-hours trading session (EXT).


What Triggers a Stop Price?

  • For stock & futures buy and sell orders, the stop price triggers by the last price at the specific exchange the order rests on, not necessarily the NBBO. 
  • For option buy orders, the stop price triggers by the bid price or a trade at the specific exchange the order rests on, not necessarily the NBBO. 

  • For option sell orders, the stop price triggers by the ask price or a trade at the specific exchange the order rests on, not necessarily the NBBO.

When considering a stop order, please keep in mind that the stop order will remain on the routed exchange. As a result, although the stop may appear to trigger due to the National Best Bid and Offer (NBBO), which quotes on our platform, the stop may not trigger if the quote does not print on the exchange where the order rests.


If you're using the Active Trader Interface or trading futures and want to learn how to set up a stop order then please visit our Active Trader Overview by clicking here



Setting up a Stop Limit

A limit order is sent after the price of the position reaches or breaches the stop price. The stop price acts as a trigger for the entry of a limit order at a set price.


Desktop Platform:  Inputting a Stop Limit order for a single short option position.

Let's say we sold an Apr 20 SPY 260 put for a $3.00 credit and want to reduce our losses just in case the price rises to $4.


Web-browser Platform: Inputting a Stop Limit for long stock

For this example, we purchased GILD for $75 and want to sell 100 GILD shares at $73.10 (limit order) if the last price hits $73.


Web-browser Platform: Inputting a Stop Limit for long option

For this example, we will set a stop limit order in Table mode to route a sell to close limit order for a long QQQ June 19 180 put at $0.17. The Stop Trigger will route a limit order when the Ask price dips down to $0.15. First, line up a closing order from the Portfolio tab, then select Stop Limit from the Order Type dropdown menu, as illustrated below. 


After selecting Stop Limit from the Order Type dropdown menu, a Stop Trigger price field will appear beneath the Limit Price field. Enter a Stop Trigger price (orange arrow) and enter a Limit Price (yellow box). Lastly, select a Time-In-Force.


Mobile Platform: Inputting a Stop Limit for long stock

In the example below, we will sell 2000 shares of GE at $13.05 (limit order) if the last price hits $13.


Mobile Platform: Inputting a Stop Limit for a long option

A stop order for an option position is entered in Table Mode.



Setting up a Stop Market

A market order that is sent after the price of the position reaches or breaches the stop price.


Desktop Platform: Inputting a Stop Market order for a single short option position.

Again, let's use our short Apr 20 SPY 260 put that was sold for a $3.00 credit and we want to reduce our losses just in case the price rises to $4.


Web-browser Platform: Inputting a Stop Market order for long stock

Again, we'll be using GILD stock that was purchased at $75. In this case, to prevent further losses we will initiate a market order if the stock hits $73.


Web-browser Platform: Inputting a Stop Market order for a long option

For this example, we will set a stop market order in Table mode to route a sell to close market order for a long QQQ June 19 180 put. The Stop Trigger will route a market order when the Ask price dips down to $0.15. First, line up a closing order from the Portfolio tab, then select Stop Market from the Order Type dropdown menu, as illustrated below. 


After selecting Stop Market from the Order Type dropdown menu, a Stop Trigger price field will appear (yellow outline). However, since a market order routes when the stop is triggered, the Limit Price field disables. Lastly, select a Time-In-Force (red arrow).


Mobile Platform: Inputting a Stop Market order for long stock

Here, we'll be using GE stock. In this case, we will initiate a market order once the stock hits $13.


Mobile Platform: Inputting a Stop Market order for a long option

Stop orders for an options position are entered in Table Mode.