How to Do Stop Loss on Fidelity: Step-by-Step Guide
Fidelity lets investors place stop-loss orders on eligible securities to manage downside risk without continuously monitoring a position.
A sell stop-loss order is triggered when the security reaches the specified stop price and then becomes a market order.
The resulting execution price may differ from the stop price, particularly during sharp price movements.
How to Set a Stop Loss on Fidelity
- Log in to your Fidelity account.
- Go to Accounts & Trade – Trade.
- Select the account and enter the stock/ETF symbol.
- Choose Sell and enter the number of shares.
- Under Order Type, select Stop Loss.
- Enter your Stop Price.
- Choose how long the order should remain active (typically Day or Good ’til Canceled (GTC))
- Select Preview Order, review the details, and
- Submit the order.
Once placed, the stop-loss is essentially a conditional order: if the market price meets or crosses your stop price, Fidelity converts it into a market order.
- You own 100 shares of ABC.
- ABC is currently trading at $50 per share.
- You select Action: Sell.
- You choose Order Type: Stop Loss.
- You set a Stop Price of $45.
How to Set a Stop Loss on Fidelity App (iOS/Android)
On the Fidelity mobile app, the process is similar.
- Open the Fidelity app and log in.
- Tap Transact, then select Trade.
- Select the stock or ETF you want to trade.
- Select the account that holds your position.
- Choose Sell if you own the shares and want to protect your position.
- Enter the number of shares you want to sell.
- Tap Order Type and select Stop Loss.
- Enter your Stop Price.
- Select the Time in Force, such as Day or GTC, if available.
- Review the order details carefully.
- Tap Preview or Verify Order, then submit the order.
- Check the confirmation screen to make sure your stop-loss order was successfully placed.
No commissions apply specifically to stop orders. Fidelity charges $0 commission on U.S. stock trades, so placing a stop-loss has no extra fee beyond the normal trade costs.
Can’t find the Stop Loss option? You may need to switch the Fidelity app to the Single screen trading experience in your settings.
Fidelity has indicated that stop orders are available through the Single screen experience, so changing the trading layout may make the option appear.
How to Set a Trailing Stop Loss on Fidelity
A trailing stop loss automatically adjusts your stop price as the stock moves in your favor. You can set the trail as either a dollar amount or a percentage.
| Step | What to Do | What to Enter |
|---|---|---|
| 1 | Log in to Fidelity | Open your Fidelity account |
| 2 | Open the Trade screen | Select Trade and choose Stocks/ETFs |
| 3 | Select your account | Choose the account holding your position |
| 4 | Enter the ticker | Search for the stock or ETF |
| 5 | Select the action | Choose Sell if you own the shares |
| 6 | Enter quantity | Enter the number of shares you want to protect |
| 7 | Choose Order Type | Select Trailing Stop Loss ($) or Trailing Stop Loss (%) |
| 8 | Set the trail | Enter a dollar amount or percentage, such as $2 or 5% |
| 9 | Choose the trigger basis | Select Last, Bid, or Ask, if available |
| 10 | Select Time in Force | Choose Day or GTC, when available |
| 11 | Review the order | Check the ticker, quantity, trail, trigger basis, and time in force |
| 12 | Preview the order | Review the complete order before submitting |
| 13 | Place the order | Submit the order |
| 14 | Confirm the order | Check the confirmation to make sure it was placed |
For example:
- You buy XYZ at $20.
- You place a sell trailing stop of $1<.
- XYZ rises to $24, so your trailing stop moves up to $23..
- If XYZ then falls to $23, the trailing stop is triggered.
Example: Suppose you hold shares at $20 and set a $1 trailing stop. If the stock climbs to $29 and then reverses to $28, the order will trigger at $28.
Stop Loss vs. Stop Limit Vs Trailing Stop Loss on Fidelity
Fidelity offers Stop Loss, Stop Limit, and Trailing Stop Loss orders, each with different trigger and execution rules.
| Feature | Stop Loss | Stop Limit | Trailing Stop Loss |
|---|---|---|---|
| Stop Price | Fixed | Fixed | Automatically adjusts |
| What You Enter | Stop price | Stop price + limit price | Dollar or percentage trail |
| Moves As Stock Rises | No | No | Yes |
| Becomes After Triggering | Market order | Limit order | Market order |
| Execution Price | Not guaranteed | Controlled by limit price | Not guaranteed |
| Could Fail To Execute? | Generally less likely | Yes | Generally less likely |
| Example | Stock at $50 → stop at $45 | Stock at $50 → stop at $45, limit at $44 | Stock at $50 → $2 trail → stop at $48 |
| If Stock Rises To $55 | Stop stays at $45 | Stop stays at $45 | Stop moves to $53 |
| If Stock Falls | Triggers at the fixed stop | Triggers at the stop, then requires the limit price | Triggers when the stock falls by the trailing amount |
| Main Purpose | Limit potential losses | Limit losses while controlling the minimum acceptable price | Protect potential gains while allowing further upside |
| Best For | Simple downside protection | Price control | Automatically locking in gains |
The table illustrates the difference. For instance, with stock at $85 and a sell-stop at $83:
- Stop Loss: Once $83 is hit, a market sell order goes through, likely filling around the next available price
- Stop Limit: Once $83 is hit, a limit‐sell@83 is entered. If the stock continues falling past $83 without trading there, the limit order may never fill.
The main difference is what happens when the trigger is reached: a Stop Loss and Trailing Stop Loss become market orders, while a Stop Limit becomes a limit order.
What Happens When a Fidelity Stop Loss Is Triggered?
A Fidelity stop-loss order is designed to sell a security when its price reaches a specified stop price.
So, when the stop price is reached, the stop-loss order automatically converts to a market order and is submitted for execution at the next available market price.
Your shares may then be sold at the next available market price, which could be different from $45.
| Stock Price | Order Status |
|---|---|
| $50 | Stop loss remains inactive |
| $47 | Stop loss remains inactive |
| $45 | Stop loss is triggered |
| Below $45 | Market order is sent for execution |
| Execution | Shares sell at the next available market price |
Fidelity Stop Loss Order FAQ
Yes, you can cancel or modify an open stop order before it triggers from the Activity & Orders page. Once it becomes a market order, you can no longer cancel it as a stop order.
No, Fidelity executes stop-loss and stop-limit orders only during regular market hours. If the stop price is reached outside those hours, the order waits until the next market open.
No, stop orders generally require whole shares. If you enter a stop order for fewer than 100 shares, Fidelity uses the first qualifying round-lot trade to trigger the order once the stop price is reached.
Yes, Fidelity generally adjusts eligible GTC sell stop orders for ex-dividends unless you select “Do Not Reduce.” Stock splits also automatically adjust the order’s price and share quantity.
No, Fidelity stop orders are available only for stocks, ETFs, and single-leg options. You cannot place stop orders on mutual funds or fractional-share trades.
No, the stop price is only the price that triggers a market order. The actual execution price may be significantly different, especially during a gap or a fast-moving market.
A trailing stop is a type of stop-loss order that automatically adjusts its trigger price as the market moves. For a sell order, the trigger price moves higher as the stock price rises.
References:
2 Comments