Definitions
- Account
- Account Net Worth
- Action
- Available to Trade Without Margin Impact
- Balances
- Based On
- Buying Power
- Buying Power Used
- Cash Available to Buy Securities
- Cash Covered Put Reserve
- Cash Spread Reserve
- Cash Used
- Conditions
- Core Account
- Core Money Market
- Estimated Commission
- Held in Cash
- Intraday Buying Power
- Limit Price
- Margin
- Options
- Options in the Money
- Orders
- Order Confirmation Number
- Order Type
- Positions
- Quantity
- Settlement Date
- Stop Price
- Symbol
- Tax Lot
- 30 Day Yield %
- Time in Force
- Total Account Value
- Trade Type
- Trail Amount
- Unsettled Cash - Credit/Debit
- Unsettled Trades
A stock, or an equity, is a security that represents a share of ownership and voting rights in a company. On Fidelity.com, you can trade most basic equities on domestic exchanges, such as the American Stock Exchange and the New York Stock Exchange, as well as Nasdaq-listed, over-the-counter stocks.
Placing Trades Online
- How do I see my positions without leaving the Trade Stocks page?
- How do I see my balances without leaving the Trade Stocks page?
- How do I see my orders without leaving the Trade Stocks page?
- How do I sell all the shares I own of a particular security?
- Will I have the opportunity to change or cancel a trade before executing it?
- How can I attempt to cancel a pending trade?
- When is my order submitted to Fidelity?
- What trade verification and confirmation do I receive online?
- Will I receive a trade confirmation via mail?
- How do I learn about trading on margin and selling short?
- How do I learn about trading specific shares?
- How do I learn about trading options?
Fees and Commissions
- How are fees and commissions for online orders assessed?
- Are there fees in addition to the commission that Fidelity charges?
Settling Orders
- What is the settlement date?
- How does Fidelity settle a trade?
- Can I specify how I wish to pay for a trade?
- When will Fidelity credit the proceeds of a sale to my core account?
- When can I write checks against the proceeds of a sale?
Trading Hours
- When can I place a stock trade?
- What is crossing session trading?
- Are there any special conditions on trading stocks when the markets are closed?
Extended Hours Trading
- Why is Fidelity offering extended hours trading?
- What are the risks of extended hours trading?
- Am I authorized to place extended hours trades?
- What is an Electronic Communications Network (ECN)?
- What stocks can I trade during extended hours?
- Can I trade on margin during extended hours?
- What types of stock orders can I place during extended hours?
- Are stock quotes available during extended hours?
- What are order book quotes?
- Is there a limit to the number of shares per extended hours order?
- When are premarket orders executed?
- When are after hours orders executed?
- How are extended hours orders executed?
- What happens to unexecuted orders?
- Can I change or cancel an extended hours order?
- What happens if I change an extended hours order?
- What happens if an ECN becomes unavailable during an extended hours session?
- Will stocks stop trading on news or other events?
- What are the commissions for extended hours trades?
- How are extended hours trades settled?
Restrictions and Requirements
- What are the restrictions on online orders?
- What types of transactions can I place?
- What order types can I place on a stock order?
- What time limitations can I place on an order?
- What conditions can I place on the execution of an order?
- What are the cash/margin requirements for placing an online trade?
Related Help Topics
PLACING TRADES ONLINE
How do I see my positions without leaving the Trade Stocks page?
To see your positions without leaving the Trade Stocks page, select the Positions tab in the top right corner of the Trade Stocks page. The Positions tab on the Trade Stocks page displays each position's Symbol, Quantity (QTY), Price, Value, and Type.
During market hours, the figures displayed are displayed in real-time. The date-time stamp displays the date and time on which these figures were last updated. To refresh these figures, click Refresh.
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How do I see my balances without leaving the Trade Stocks page?
To see your balances without leaving the Trade Stocks page, select the Balances tab in the top right corner of the Trade Stocks page. The Balances tab on the Trade Stocks page displays the same fields displayed on the Balances page. During market hours, balances are displayed in real-time.
A list of commonly-viewed Balance fields also appears at the top of the page under the account dropdown box. The Balance fields displayed (when applicable) are Account Net Worth, Cash Avail to Purchase, Unsettled Cash – Credit/Debit (if you have deposits or withdrawals pending), Margin Buying Power (if you have a margin account), and Day Trade Buying Power (if you have a Day Trade Account).
For accounts with margin trading capability, the Balances tab displays the same fields displayed on the Balances page.To see more balances, click Show All Details. The date-time stamp displays the date and time on which these figures were last updated. To refresh these figures, click Refresh.
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How do I see my orders without leaving the Trade Stocks page?
To see your orders without leaving the Trade Stocks pages, select the Orders tab in the top right corner of the Trade Stocks page. The Orders tab on the Trade Stocks page displays information for open, pending, filled, partial, and canceled orders. You may attempt to cancel or attempt to cancel and replace an order from the Orders tab on the Trade Stocks page.
The date-time stamp displays the date and time on which this information was last updated. To refresh order information, click Refresh.
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How do I sell all the shares I own of a particular security?
To sell all the shares you own of a particular security, on the Trade Stocks screen, in the Action pulldown menu, select Sell All Shares. Your order to Sell All Shares reflects only your current holdings for the security you selected—open or unexecuted buy orders for this security are not included. The following rules apply:
- If you have an open order for a security, you cannot select Sell All Shares for that particular security.
- If you own the security in both cash and margin, you need to submit two separate trades (one trade to sell the cash holding of the security and another trade to sell the margin holding of the security).
- You can not sell all of a position you don't own, or are shorting.
Will I have the opportunity to change or cancel a trade before executing it?
Your order will not be sent to Fidelity if you leave the Verification page before you click Place Order, or if you click Edit Order. To cancel the order and return to the order entry page, click the Cancel link.
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How can I attempt to cancel a pending trade?
You can attempt to cancel a pending trade that has not yet executed from the Orders page. See Ordersfor more information.
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When is my order submitted to Fidelity?
When you click Place Order on the Verification page, you are agreeing that the order information is correct, and youare authorizing Fidelity to execute the order on your behalf.
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What trade verification and confirmation do I receive online?
When you submit an order online, you always see a Verification page. Review the Verification page carefully beforeplacing your order. Once you place your order, you see a Confirmation page displaying your order confirmation number andtrade details. You can print this confirmation for your records. Once the order has been executed, Fidelity mails you apaper confirmation.
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Will I receive a trade confirmation via mail?
Yes. A trade confirmation is mailed on the business day following the execution of any buy or sell order. If you donot have sufficient funds in your core account, you should not wait for the confirmation to reach you before mailing yourpayment or securities. Once you receive your confirmation, examine it carefully and advise Fidelity of any discrepancy immediately.
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How do I learn about trading on margin and selling short?
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How do I learn about trading specific shares?
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How do I learn about trading options?
See Trading Options, or Trading Multi-leg Options.
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FEES AND COMMISSIONS
How are fees and commissions for online orders assessed?
How fees and commissions are assessed depends upon a variety of factors. Visit Investment Products > Brokerage and click "More about online commission rates" to view Fidelity's Brokerage Commission and Fee Schedules.
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Are there fees in addition to the commission that Fidelity charges?
Yes. There is a regulatory fee, commonly referred to in the industry as the Securities and Exchange Commission (SEC) fee, of $17.40 per $1,000,000 of aggregate sale proceeds. This fee is in addition to your commission, and will be shown separately on your confirmation.
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SETTLING ORDERS
What is the settlement date?
The settlement date is the day on which payment for securities bought or certificates for securities sold must be in youraccount. Settlement dates vary from investment to investment. For details, see the table ofsettlement dates in the Brokerage Handbook.
- When you buy a security, payment must reach Fidelity by the settlement date.
- When you sell a security, Fidelity will credit your account for the sale on the settlement date.
- For options and other securities settling in one day, you must have sufficient cash or margin equity in your account when your order is placed.
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How does Fidelity settle a trade?
Trades placed in a non-retirement account will be settled automatically from the balance in your core account if no otherfunds are received. If you deplete the balance in your core account, you may deposit additional funds into your core accountor pay for your trade through any available equity in your margin account. Your margin account will be used automatically ifyou have one and if there are sufficient marginable securities to pay for your purchase. Fidelity reserves the right to require100% of the purchase price in your account to cover special purchases or first-time trades (e.g., stocks under $5, one-day-settlementproducts).
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Can I specify how I wish to pay for a trade?
Yes. You may pay for trades in a non-retirement account either from a balance currently held in your core account or by depositingadditional money via electronic funds transfer, a check, or a wire transfer to Fidelity. For detailed instructions and online forms,see Put Money/Assets into Your Accounts. This page lists and describes all the ways you can put money/assets into yourbrokerage account, including transfers between your Fidelity and bank accounts.
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When will Fidelity credit the proceeds of a sale to my core account?
On the settlement date, unless you instruct us otherwise. Proceeds will automatically be used to pay down any margin debt, ifyou have any, and the balance will remain in your core account.
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When can I write checks against the proceeds of a sale?
Brokerage customers with checkwriting may write checks against the proceeds of a sale on or after the settlement date.
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TRADING HOURS
When can I place a stock trade?
- You can place stock tradesduring the standard market session, normally Monday through Friday from 9:30 a.m. to 4:00 p.m. Eastern time (ET) when U.S. markets (such as Nasdaq) and exchanges (such as the NYSE) are open for trading, unless trading is halted.
- You can place orders to buy and sell when the markets are closed.
- With a Fidelity brokerageaccount, you can participate in Extended Hours trading on Fidelity.com. Fidelity accepts premarket orders from 7:00 - 9:28 a.m. ET, and after hours orders from 4:00 8:00 p.m. ET.
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Are there any special conditions on trading stocks when the markets are closed?
Orders placed when the markets are closed are subject to market conditions existing when the markets next open. Any equity requirement necessary for trade approval will be based on the most recent closing price of the security that you intend to buy or sell. Because of fluctuating conditions, the ultimate execution price may differ at times from the most recent closing price.
When placing orders when markets are closed, carefully consider any limitation you may wish to place on the transaction. Fidelity reserves the right to refuse to accept any opening transaction for any reason, at its sole discretion.
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EXTENDED HOURS TRADING
Why does Fidelity offer extended hours trading?
Extended hours trading gives you greater flexibility in managing your trading activity, and allows you to react to market news outside of standard trading hours.
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What are the risks of extended hours trading?
Extended hours trading is conducted through an electronic communications network (ECN) which may pose certain risks greater than those present during standard market hours. These risks include:
Liquidity. Liquidity generally refers to the level of trading activity and the volume of securities available to be traded. In general, the greater the liquidity in a security, the greater the chance an order will be executed. There may be a lack of liquidity (buyers and sellers) in the premarket or after hours sessions on an ECN which prevents your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during standard market hours.
Price Volatility and Price Spreads. Price volatility generally refers to the speed and size of changes in the price of a security. There may be more volatility in the extended hours sessions than in the standard day session, which may prevent your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during standard market hours. Price spread generally refers to the difference in prices between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours sessions may result in wider than normal spreads for a particular security.
Definition of the ECN. The ECN, as used in Fidelity's extended hours trading sessions, web site content, and other materials, refers to one or more electronic communications networks (ECNs) to which an order may be submitted for display and execution from Fidelity. ECNs electronically match buyers and sellers to execute Limit orders. Fidelity utilizes NYSE Archipelago as its primary ECN for extended hours trading. Extended hours session orders may also be executed by a dealer at a price that is at or better than the NYSE Archipelago best bid or offer. Depending on the availability of Archipelago, your order may be submitted to one or more of the ECNs with which Fidelity is directly or indirectly linked.
Access to Other Markets and Market Information. Not all ECNs are connected or linked in the extended hours trading sessions nor offer extended hours trading for the same time periods. Therefore, there is a possibility that greater liquidity in a particular security or a more favorable price is available in another ECN. Access to quotes and trading information in other ECNs may be limited. Additionally, other participants in the premarket or after hours sessions may be placing orders based on news or other market developments outside the standard market hours that may affect the price of securities. Keep in mind that news stories and related announcements, coupled with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security. You should determine prior to placing an order in the extended hours sessions that you have sufficient current information to determine your limit order price.
Price Variance from Standard Market Hours. Orders are eligible for execution in the extended hours markets at prices which are generally based on the supply and demand created by other sellers and buyers who participate in the extended hours sessions for an ECN. Therefore, execution prices of securities transactions in the ECN system in either the premarket or after hours session may not necessarily match the pricing which is present in the standard daytime trading session. You might pay more, or receive less than you would compared to trades executed during standard market hours. However, you will not receive an execution price that is worse than your established limit for the extended hours sessions.
Time and Price Priority of Orders. Orders entered into the premarket and after hours sessions are generally handled in the order in which they were received at each price level. Therefore, orders transmitted to the ECN by other investors before your order may match an existing order that you were attempting to match, thereby removing that order from the ECN order book. Similarly, your order may not be first in line to be executed if a matching order comes into the ECN. This may prevent your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during standard market hours. If you change your order, your change is treated as cancellation and replacement which may cause it to lose its time priority.
Communication Delays. Delays or failure in communications due to a high volume of orders or communications, or other computer system problems, may cause delays in, or prevent access to current information or execution of your order.
Trading Options Securities. Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value ("IIV") and Lack of Regular Trading in Securities Underlying Indexes. For certain products, an updated underlying index or portfolio value or IIV will not be calculated or publicly disseminated during Extended Trading Hours. Since the underlying index or portfolio value and IIV are not calculated or widely disseminated during Extended Trading Hours, an investor who is unable to calculate implied values for certain products during Extended Trading Hours may be at a disadvantage to market professionals. Additionally, securities underlying the indexes or portfolios will not be regularly trading as they are during Regular Trading Hours, or may not be trading at all. This may cause prices during Extended Trading Hours to not reflect the prices of those securities when they open for trading.
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Am I authorized to place extended hours trades?
In order to place an order during an extended hours session you must have a Fidelity Brokerage® account and agree to the ECN User Agreement. Also, before placing your first trade in an extended hours session, you must speak to a representative to discuss the risks associated with this market. Some risks include, but are not limited to, a lack of liquidity, greater price volatility and wider price spreads.
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What is an Electronic Communications Network (ECN)?
An ECN is an electronic order matching system in which investors and other market participants may participate. You can place orders through the ECN during the extended hours trading sessions. The ECN, as used in Fidelity's extended hours trading sessions, web site content, and other materials, refers to one or more electronic communications networks (ECNs) to which an order may be submitted for display and execution from Fidelity. ECNs electronically match buyers and sellers to execute Limit orders. Fidelity utilizes NYSE Archipelago as its primary ECN for extended hours trading. Extended hours session orders may also be executed by a dealer at a price that is at or better than the NYSE Archipelago best bid or offer. Depending on the availability of Archipelago, your order may be submitted to one or more of the ECNs with which Fidelity is directly or indirectly linked.
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What stocks can I trade during extended hours?
During the extended hours sessions, you can trade all Nasdaq (National Market and SmallCap) and Listed securities.
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Can I trade on margin during extended hours?
Yes. As with regular session trades, you must have a Margin Agreement on file with Fidelity to trade on margin or to place a sell short order. If you do not have a Margin Agreement, you must use cash. To establish a Margin Agreement on an account, select Update Accounts/Features under the Accounts & Trade tab, and click Margin and Options under Account Features.
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What types of stock orders can I place during extended hours?
You can place buy, buy to cover, sell or short sale orders during extended hours sessions. Your orders must be limit orders. Time-in-force limitations must be either day, or immediate or cancel. Day orders are good until the premarket or after hours session ends. You can't place any conditions (such as All or None or Do Not Reduce) on an extended hours trade. You will only see the Buy to Cover and Sell Short actions if you are eligible to place these types of orders. Short sales are available ONLY from 8:00 AM 9:28 AM ET during the pre market session but are eligible from 4:00 PM ET 8:00 PM ET during the after hours session.
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Are stock quotes available during extended hours?
A premarket or after hours quote obtained from Fidelity.com is the best real-time quote for a stock eligible for trading during extended hours. Extended hours quotes reflect the best prices (top of book) available in the Arca order book.
An extended hours quote includes the Last Trade and Tick in the extended hours session from the previous standard session closing price. Since this change can be substantial, we recommend that you review this information as well as the Bid and Ask price along with Size before determining your limit price.
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What are order book quotes?
Order book quotes are expanded quote information available only during extended hours trading sessions. They include the current ten best Bid and ten best ask ECN extended hours orders for a specified security, available for matching from one or more ECNs. For use in Fidelity's extended hours trading session, order book quotes only reflect bid and ask orders from Arca. In addition to the best current bid and ask, order book quotes also supply the following information:
- Change from the standard session closing price
- Last trade and tick
- Bid and ask size
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Is there a limit to the number of shares per extended hours order?
There is no minimum order size, and the maximum order is 25,000 shares on either side (bid to buy/offers to sell). The minimum quantity for immediate or cancel orders is 100 shares.
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When are premarket orders executed?
Orders in the premarket session can only be entered and executed between 7:00 AM and 9:28 AM ET. Short sale orders are available ONLY from 8:00 AM ET 9:28 AM ET.
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When are after hours orders executed?
Orders in the after hours session can be entered and executed between 4:00 PM and 8:00 PM ET..
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How are extended hours orders executed?
Orders entered into the premarket and after hours sessions are generally handled in the order in which they were received at each price level. Therefore, orders transmitted to the ECN by other investors before your order may match an existing order that you were attempting to match, thereby removing that order from the ECN order book. Similarly, your order may not be first in line to be executed if a matching order comes into the ECN. This may prevent your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during standard market hours. If you change your order, your change is treated as cancellation and replacement which may cause it to lose its time priority.
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What happens to unexecuted orders?
Orders not filled during Fidelity's premarket session are automatically canceled if they are not filled by the end of the session (i.e., 9:28 a.m. Eastern Time unless trading is halted prior to 9:28 a.m.) during which they were placed. You must re-enter these orders during standard market hours if you still wish to have Fidelity execute the trades.
Orders not filled during Fidelity's after hours session are automatically canceled if they are not filled by the end of the session (i.e., 8:00 p.m. Eastern Time unless trading is halted prior to 8:00 p.m.) during which they were placed. You must re-enter these orders during the premarket or standard market hours if you still wish to have Fidelity execute the trades.
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Can I change or cancel an extended hours order?
You may attempt to change or cancel your order any time before it is executed. If all or a portion of your order is executed before your change or cancellation is received, the portion of your order which was executed cannot be changed or cancelled.
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What happens if I change an extended hours order?
If you change your order, your change is treated as a cancellation and replacement, which may cause it to lose its place in the order book and therefore may result in a missed execution.
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What happens if an ECN becomes unavailable during an extended hours session?
Fidelity may submit orders to another eligible and available ECN or dealer to maintain order flow. If another ECN or dealer is unavailable, Fidelity reserves the right to cancel any existing order on the order book along with any new orders entered for that extended hours session.
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Will stocks stop trading on news or other events?
If a stock that normally trades on the ECN closes on a trading halt in its primary market, or trading is later halted by its primary exchange or a regulatory authority, trading of that stock will also be suspended on the ECN. The rules of Nasdaq and the stock exchange governing stock halts apply to the extended hours trading sessions, just as they do to other sessions.
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What are the commissions for extended hours trades?
Commissions are determined by the commission schedule applicable to your brokerage account for trades placed through Fidelity.com. See the Brokerage Commission and Fee Schedules for complete details.
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How are extended hours trades settled?
For settlement and clearing purposes, trades executed during extended hours sessions are processed as if they had been executed during standard market hours. For example, the trade date would be May 13, 2013, for any trade executed during an extended hours session on May 13, 2013. The standard three-day settlement process applies to all extended hours trades.
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RESTRICTIONS AND REQUIREMENTS
What are the restrictions on online orders?
To protect customers' accounts, Fidelity has put the following restrictions on orders placed online:
- No more than 20 opening ordersper day. An opening order is an order that allows you to create a positionin a particular security. Most buy orders are opening orders.
- No more than $200,000 in buyorders per day.
- No more than 50 option contractsper order.
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What types of transactions can I place?
Margin orders, Sell Short, and Buy to Cover require a margin agreement.
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What order types can I place on a stock order?
The following order types are available for stock trading:
- Market Order
- Limit Order
- Stop Loss
- Stop Limit
- Trailing Stop Loss ($ or %)
- Trailing Stop Limit ($ or %)
For a Stop Limit order, you must specify both the Stop Price and Limit Price, which can be the same or different amounts.
For more information, see Order Types and Conditions.
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What time limitations can I place on an order?
You place a time limitation on a stock trade order by selecting one of the following time-in-force types:
For more information, see Order Types and Conditions.
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What conditions can I place on the execution of an order?
You place conditions on a stock trade order by selecting one of the following:
For more information, see Order Types and Conditions.
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What are the cash/margin requirements for placing an online trade?
For non-retirement brokerage accounts, at least 25% of the order value must be in the account already and in cash.However, to purchase securities priced under $5 per share you must have 100% of the order value in cash before placing the order.
The current initial margin requirement is 50% of the purchase price for most securities. You generally have up to fivebusiness days to meet this requirement after purchasing securities on margin. This requirement is known as Reg. T or the Fedrequirement and is set by the Federal Reserve Board. After the purchase is complete, there are additional ongoing marginrequirements known as maintenance requirements which require customers to maintain a certain level of equity in their marginaccounts. The house maintenance requirement is currently 30%; however, based on the liquidity and volatility of a security,this figure can be as high as 100%.
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Related Help Topics
- Trading Specific Shares
- Extended Hours Trading
- Order Types and Conditions
- Margin and Selling Short
- Trading Options
- Trading Multi-leg Options
- Orders
- American Depositary Receipts
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