My only issue with Fidelity is this. I don’t have an intention of selling this stock soon, but I wanted to place a GTC limit sell order… any loopholes here? thanks.
You can place a Good ‘Til Canceled (GTC) order on Fidelity for a stock that you wish to sell when it hit a specific price, but if the limit price is too far away from where the stock is currently trading at, Fidelity will not let you place that order.
Instead, the brokerage will show you this error message:
(020906) The limit price you entered is too far away from the last trade for this security. For sell limit orders on stocks trading between $5 – 10.00, the sell limit price cannot be greater than $15.00.
If your limit order happens to exceed 50% of the current stock price, you would see this error message.
Error: (000906) The limit price you have entered is too far away from the Last Trade price for this security. Please use the following guidelines when entering your limit price: For buy limit orders in which your limit price is below the current Last Trade price, your limit price can be no more than 50% away from the last trade. For sell limit orders in which your limit price is above the current Last Trade price, your limit price can be no more than 50% away from the Last Trade price.
The workaround to this problem is to reduce your order limit sell price. Ensure it is not too far away from the current price that the stock is trading at. You can manually adjust this sell order as the stock price move closer to your limit order.
Your limit order can always be modified as long as the current market price isn’t too close to it.
For example: ticker ABC is currently trading at $10 and you wish to sell it at $30. Unfortunately, Fidelity won’t allow you to put in that limit sell order because it is too wide. You can fix this by adjusting the limit order to $19. When the stock price reaches around $17 or 18, you can edit your limit order and move it further out.
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