ORDER TYPES: MARKET ORDER, LIMIT ORDER, STOP ORDER, STOP LIMIT ORDER

Order Types

Market Order A Market Order is a customer request to buy or sell at the best price available (the prevailing market price) when the order reaches the marketplace. A Market Order guarantees execution, but not price. For comparison, see Limit Order. If you do not want your order entered at the Market price, you must enter one of the following price conditions: Limit, Stop or Stop Limit. Buy orders will execute at the "Ask" price and Sell orders will execute at the "Bid" price. A security price can rise or fall between the time you place the order and the time the order is executed. As a result, the current quote and your execution price may differ, particularly when trading securities with volatile price movements, in a fast market or if the stock is thinly traded. Market Orders entered outside of market hours to be executed at the market's opening may have significantly different opening prices from the security's closing price. Limit Order A Limit Order is a request to Buy or Sell a security only at a price that you specify (the limit) or at a better price. Execution of Limit Orders is not guaranteed, but if executed, the price you set or a better price is guaranteed. For comparison, see Market Order. Place a Limit order when you're willing to wait for the price to move to your price, and risk that the order might not be executed if that doesn’t occur. Another use of a limit order is to control risk in a volatile market. For example, to make sure that you don't buy or sell at a dramatically different price than you expect when considering a Market order, a Limit order can instead be placed above the current Ask price for a Buy or below the Bid price for a Sell order. There is no guarantee of execution on a Limit order. Sell orders will execute at or above your Limit price, and Buy orders will execute at or below your Limit price. When placing a Limit order, you must enter a price with the correct decimal minimum price variation. Over The Counter Stocks (NASDAQ, OTCBB) - Acceptable prices are in multiples of .0001 Listed Stocks (NYSE, AMEX) - Acceptable prices are in multiples of .01 You may also place time conditions on a Limit order. See Time limits/conditions. Stop Order A Stop Order is an order to Buy or Sell at the Market price once the security is at or has traded through a certain price (the Stop price). Buy Stops are entered above the current Market price. If the security trades at or above your Stop price, your Stop Order becomes a Market Order and your broker will buy at the current Market price. A Buy Stop is designed to help protect a profit or limit a loss on a short sale. Sell Stops are entered below the current Market price. If the security trades at or below your Stop price, your Stop Order becomes a Market Order and it will sell at the current market price. A Sell Stop is designed to help protect a profit or limit a loss on a long position. The risk of a Stop Order is that it may be triggered by temporary market movements or executed at a price higher or lower than the Stop price. A Stop Order does not guarantee a price.  NOTE: Schwab will not trigger your stop or stop limit orders based upon odd-lot transactions, or any other transactions excluded from the consolidated last sale price calculations. Stop Limit Order A Stop Limit Order is an order which becomes a Limit Order once the security trades at the designated stop price. A Stop Limit Order instructs a broker to buy or sell at a specific price or better, but only after a given Stop price has been reached or passed. It is a combination of a Stop Order and a Limit Order. To enter a Sell Stop Limit Order, you must enter a Stop price below the current security price and a Limit price less than or equal to the Stop price. If the security trades at or below the Stop price, the Limit Order to sell the security you entered will be activated. To enter a Buy Stop Limit Order, you must enter a Stop price above the current security price and a Limit price above or equal to the Stop price. If the security trades at or above the Stop price, the Limit Order to buy the security you entered will be activated. A Stop Limit Order does not guarantee an execution. NOTE: Schwab will not trigger your stop or stop limit orders based upon odd-lot transactions, or any other transactions excluded from the consolidated last sale price calculations.