Upbeat music plays throughout.
The clip begins with a static top-down shot of a desktop. A notebook appears with "To do list" written at the top. The tip of a potted plant sits above the notebook next to a cup of coffee, a pair of glasses, and the tip of an iPad.
The frame zooms in closer and "Place a standard sell stop order" appears next to an empty box.
The narrator's voice is animated with on screen text: "A standard sell stop order allows you to sell a security when it reaches a specific price."
A standard sell-stop order, one of three types of stop orders, allows you to sell a security when it reaches a specified price and can be useful if you're looking to obtain a pre-determined exit price, limit a loss, take advantage of price swings, or lock in a profit.
The screen scrolls downward. Text is displayed:
"Use to:
- Obtain a pre-determined exit price
- Limit a loss
- Take advantage of price swings
- Lock in a profit"
To place a standard sell-stop order, roll over "Trade" and click "All-In-One Trade Ticket."
The frame cuts to a full screenshot of the Schwab.com client Account Summary page. Accounts, Trade, Research, Products, Guidance, and Service appear in the main navigation bar at the top of the screen. The cursor clicks "Trade" and then "All-in-One Trade Ticket."
The All-in-One Trade Ticket fills the screen and the section "1. Enter Order" and its details are displayed.
Enter your order as usual, including the symbol, a sell action, and the quantity of shares you wish to sell for this specific sell-stop order.
The cursor moves and clicks in the "Symbol" field and selects the Apple Inc. stock. Next, the cursor selects a sell "Action" from the dropdown menu. After that, the cursor selects the "Quantity,"
the "Order Type," the "Stop Price," and "Timing."
Then for the order type, choose "Stop" and enter a price that is below the current market price. Then choose the duration: Day-Only or Good-Until-Cancelled.
A blue box appears in the upper right-hand corner with the following text: "Be aware: If you're looking for a pre-determined exit price, the actual price that is executed may be lower."
Please be aware that if you're looking for a pre-determined exit price, the actual price that is executed may be lower.
The blue box text updates to: "Be aware: When a stop-order price is reached, the instruction to sell is automatically sent and executed as a market order."
When a stop-order price is reached, the instruction to sell is automatically sent and executed as a market order meaning you will get the best available price based on the market conditions.
The box disappears and the cursor clicks the green "Review Order" button.
Click "Review Order", review the details, and—if all is correct—click "Place Order."
The next screen shows order details under the section titled, "2. Verify Order." The cursor clicks the green, "I Agree" button.
The screen transitions to on-screen text that matches the narrator's message:
"Stop prices do not guarantee execution—or trade—prices.
Once a stop price—or trigger—is reached, trades are executed at the current market price.
Therefore, the price at which a stop order is ultimately executed may be very different from the "stop" price requested in the order, especially during volatile market conditions. An example of this is when major news is disseminated after hours, potentially dramatically affecting the opening price of a security the next day."
Stop prices do not guarantee execution—or trade—prices.
Once a stop price—or trigger—is reached, trades are executed at the current market price.
Therefore, the price at which a stop order is ultimately executed may be very different from the "stop" price requested in the order, especially during volatile market conditions. An example of this is when major news is disseminated after hours, potentially dramatically affecting the opening price of a security the next day.
The next on-screen text matches the narrator's message:
"Stop orders may be triggered by a short-lived, dramatic price change.
During volatile market conditions the price of stock may fluctuate significantly within a very short period. This volatility could trigger the execution of a stop order while the stock may return to prior price levels within a short time."
Stop orders may be triggered by a short-lived, dramatic price change.
During volatile market conditions the price of stock may fluctuate significantly within a very short period. This volatility could trigger the execution of a stop order while the stock may return to prior price levels within a short time.
The next on-screen text matches the narrator's message:
"Sell stop orders may add to price declines during times of extreme volatility. A sell order, if triggered during a sudden and steep market decline, is more likely to result in a trade well below the stop price."
Sell stop orders may add to price declines during times of extreme volatility.
A sell order, if triggered during a sudden and steep market decline, is more likely to result in a trade well below the stop price.
The next on-screen text matches the narrator's message:
"Placing stop-limit orders may help manage risks.
By using a stop-limit order, as opposed to a stop order, you add certainty with respect to price, but note that trades with a limit cannot be executed for a price lower than the limit price; therefore, in some conditions, a trade may not be executed at all. This may be especially true during periods of volatility. Consider using stop limit orders where your desire is to achieve a targeted price more than an immediate trade execution."
Placing stop-limit orders may help manage risks.
By using a stop-limit order, as opposed to a stop order, you add certainty with respect to price, but note that trades with a limit cannot be executed for a price lower than the limit price; therefore, in some conditions, a trade may not be executed at all. This may be especially true during periods of volatility. Consider using stop limit orders where your desire is to achieve a targeted price more than an immediate trade execution.
Upbeat music plays in the background.
We cut back to the top-down shot of the desktop, zoomed in a bit closer to "To do list" in the notebook. We see a checkmark animate in the box next to "Place a standard sell stop order" indicating that the task has been complete.
The screen transitions to a dark blue background with "Visit Schwab.com/HowToCenter for more videos."
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