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The options stop election is based on the exchange’s best bid or offer (BBO) where the stop order resides. A stop order to sell becomes a market order when the ask price is at or below the stop price, or when the option trades at or below the stop price. Generally a stop order to buy becomes a market order when the bid price is at or above the stop price, or the option trades at or above the stop price. If you are interested in placing an order which triggers off of a bid quote or ask quote, please see Trailing Stop Orders and Contingent Orders. These price limits may vary by market center.
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The market centers to which National Financial Services (NFS) routes Fidelity stop loss orders and stop limit orders may impose price limits such as price bands around the National Best Bid or Offer (NBBO) in order to prevent stop loss orders and stop limit orders from being triggered by potentially erroneous trades. Sell stop loss and sell stop limit orders must be entered at a price which is below the current market price.Įquity stop orders placed with Fidelity are triggered off of a round lot transaction of 100 shares or greater, or a print in the security.
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Like any limit order, a stop limit order may be filled in whole, in part, or not at all, depending on the number of shares available for sale or purchase at the time. This type of order automatically becomes a limit order when the stop price is reached. This could result in a stop loss order being executed at a price that is dramatically different than what your stop loss price indicates.