Find an asset to invest in
Questions?
We have answers
Back to home
Order types we support
Order Types
We currently accept two types of orders:
- Market orders
- Limit orders
- Stop orders*
*stop orders are only available for Passoflio Pro subscribers.
What are market orders?
Market orders are orders that are immediately executed at the current market price.
Keep in mind that once an order has been filled, it cannot be reversed.
There might be cases where your order is not completely filled. For example, if you place a huge order and the stock is thinly traded, there might be a partial execution. If this happens, your order will remain open until there’s enough volume in the market to fulfill the remaining shares of your order, or until you cancel it.
If the latter happens, you will keep the shares that were purchased.
How do I place a market order?
To place a market order for a security, please follow these steps:
- Open your Passfolio app;
- Select the asset you would like to buy or sell;
- Click “Sell” or “Buy”;
- Select “Market Buy” or “Market Sell”;
- Choose how many shares or the amount in USD you would like to sell or buy;
- Review your order;
- Slide the button to submit your order.
What are limit orders?
A limit order is an order to buy or sell a security at or better than a specified price (a "limit price"). This means that you decide the price on which you want your order to be executed.
There are two types of limit orders:
- Limit Buy
- Limit Sell
A Limit Buy order can be executed only at or below the limit price you entered.
If an investor wants to buy a stock at $10, a buy limit order can be placed, and the order will only be executed if the stock trades at $10 or lower. However, if the stock never reaches the price of $10, you may lose an opportunity to buy.
The same is true for a Limit Sell order. If an investor would like to sell a stock for $10, a sell limit order can be placed, and the order will only be executed if the stock trades at $10 or higher; but there is a chance the order may not be executed in case the stock never reaches the $10 price limit.
Why would I place a Limit Order?
This type of order is for investors who know the price they want for a particular transaction and want to manage market risk. Limit orders provide a guarantee that buy orders are not executed above a maximum price and sell orders are not executed below a set minimum.
Limit orders are often used to realize the highest profit, or avoid a loss. However, this type of order does not guarantee execution. Therefore every order placed should be understood and analyzed before being placed.
What are the time restrictions for Limit Orders?
There are two time restrictions:
- Good for a Day (GTD): A limit order that expires at the end of the trading day;
- Good Till Canceled (GTC): A limit order that remains in effect until it is executed by the broker or canceled by the customer (up to 90 days).
What are the risks involved with Limit Orders?
The major risk with limit orders is that there is no guarantee that the order will be executed.
The security may simply not reach your limit price within the specified time limit, which can last till the end of the day that the order was placed, or until you cancel it (up to 90 days).
How do I place a limit order?
To place a limit order for a security, please follow these steps:
- Open your Passfolio app;
- Select the asset you would like to buy or sell;
- Click “Sell” or “Buy”;
- Select “Limit Buy” or “Limit Sell”;
- Choose the limit price you want;
- Choose how many shares you would like to sell or buy (no fractional shares allowed, only full shares);
- Select the expiration of your order;
- Review your order;
- Slide the button to submit your order.
It's important to keep in mind that you can't completely eliminate market and investment risks. You can't predict when periods of market volatility will hit, so it is often best to decide what is most important to you based on your investment goals and objectives, whether it be price or making a trade at a specified time. In general, understanding order types can help you prioritize your needs, manage risk, speed execution and provide price improvement. For all of your securities transactions, check the trade confirmation you receive from your firm to make sure the price, fees and order information is accurate. For more information access: https://www.finra.org/investors/alerts/understanding-order-types-can-save-time-and-money.
Keep in mind that all orders are not handled the same way by your financial firm. Ask about your firm’s procedures for handling the execution of securities transactions and different order types, particularly during volatile market conditions. Market orders typically receive the highest priority, followed by limit orders.
Still have questions? Contact our support.
SUGGESTED READINGS
Trading stocks
Passfolio charges no commission fees* in stock trading, which helps investors keep more of their money. To trade a stock, please follow...
Read more
Stock market holiday and trading hours
We understand that time is money, but sometimes money also needs to rest. In 2020 the U.S. market will be closed on the following days...
Read more
Who is the owner of the stocks when you buy them?
You have all ownership rights and are registered as the beneficial owner of any stock you buy in Passfolio. That means every dividend and...
Read more
Copied!
No items found.
Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.
Please see the terms of our referral program.
Please see our fractional shares disclosure.
Please read important legal disclosures that apply to your relationship with Passfolio.
Investing involves risk, including possible loss of principal.
Securities and cryptocurrencies are very different types of assets.
Cryptocurrencies are not securities.
Purchasing cryptocurrencies comes with a number of risks. Please read Passfolio Financial Cryptocurrency Risk Disclosure.
Currency and cryptocurrency exchange services provided by Passfolio Financial LLC (“Passfolio Crypto”), a US Money Services Business registered with FinCEN. Passfolio Financial LLC is not a broker dealer. Cryptocurrencies are not protected by either FDIC or SIPC. Securities products and services offered to self-directed investors through Passfolio Securities LLC Member FINRA / SIPC. Passfolio Securities, LLC does not provide cryptocurrency-related services. Passfolio Securities LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
Passfolio is the brand name of Panchain, Inc. Passfolio Securities LLC and Passfolio Financial LLC are fully-owned subsidiaries of Panchain, Inc.
To purchase securities using cryptocurrencies, you must first convert it into U.S. Dollars using Passfolio Financial LLC. You must then move the U.S. Dollar proceeds to your brokerage account at Passfolio Securities LLC where you can use it to buy securities.
Online trading has inherent risk due to system response, execution price, speed, liquidity, market data and access times that may vary due to market conditions, system performance, market volatility, size and type of order and other factors. An investor should understand these and additional risks before trading.
Content, news, research, tools, market data and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The information provided should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results.
All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Consider the investment objectives, risks, charges, and expenses of a fund before investing. Contact us for a prospectus containing this information.
Please remember that diversification is not an investment strategy without risk, and in certain circumstances, it may not fit your investment objectives. Past performance is no guarantee of future results.
Certain services (“Services”) offered through our mobile app are offered only in jurisdictions where it is legal to do so. The availability of the Services over the Internet is not a solicitation for or offering of the Services to any person in any jurisdiction where such solicitation or offering is illegal. We reserve the right to limit the availability of the Services to any person, geographic area, or jurisdiction, at any time and in our sole discretion. We make no representation that the Services are appropriate or available for use in locations outside of United States, or that accessing our mobile app is legally permitted in countries or territories where the Services may be illegal. If you access the Services from other locations, you do so at your own risk and are responsible for compliance with local laws. In particular, we are not authorized by the Brazilian Securities and Exchange Commission (CVM) to offer securities distribution services to investors who reside, are domiciled or incorporated in the Federative Republic of Brazil. The Services are not specifically directed to investors who reside, are domiciled or incorporated in the Federative Republic of Brazil and should not be understood as an offer of services directed to such investors.
According to CVM's Legal Opinion No. 33, dated September 30, 2005, Passfolio contracted RB Capital Investimentos Distribuidora de Títulos e Valores Mobiliários Ltda. ("RB Investimentos"), a Brazilian securities distributor duly authorized by the Central Bank of Brazil and the CVM, through which RB Investimentos makes Passfolio's services available to investors resident, domiciled or incorporated in the Federative Republic of Brazil. The services provided by RB Investimentos should not be understood as an offering of securities directed to such investors. Although RB Investimentos has been hired to provide Passfolio's services, Passfolio offers its services exclusively in the United States and under the rules and regulations applicable in that country. As these services are investments made directly in the United States through Passfolio, they are not registered with or subject to the supervision of the CVM or any other Brazilian regulatory agency, so the investor must have knowledge of the language and local regulation. Investors resident, domiciled or incorporated in the Federative Republic of Brazil who have become or will become clients of Passfolio through RB Investimentos may contact the following e-mail addresses: suporte@passfolio.us / contato@rbinvestimentos.com
Investors should consider the investment objectives, risks, and charges and expenses of an Exchange Traded Fund ("ETF") carefully before investing. Before investing in any ETF, you should consider its investment objective, risks, charges and expenses. Contact us at support@passfolio.us for a prospectus containing this information. Read it carefully. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks. Some specialized exchange-traded funds can be subject to additional market risks. Leveraged and inverse exchange-traded products are not designed for buy and hold investors or investors who do not intend to manage their investment on a daily basis. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.
Be sure to consider your own financial situation, perform thorough research, and consult with a qualified tax professional before making any investment decisions concerning REITs. Investments in REITs and other real estate securities are subject to similar risks as direct investments in real estate. The real estate industry is particularly sensitive to economic downturns.
Where an investment is denominated in a currency other than the investor’s currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment.
Securities products are: Not FDIC insured · Not bank guaranteed · May lose value
Market data refreshed at least every 15 minutes unless otherwise indicated. Market data provided by Polygon.
FINRA BrokerCheck reports for Passfolio Securities LLC are available at https://www.finra.org/brokercheck.
Trademarks and logos are the property of their respective owners and do not represent endorsements of any kind. Unless otherwise noted, Passfolio Securities, LLC and its affiliates are not partners, affiliates, or licensees of these companies.
Passfolio Securities, LLC
Member FINRA/SIPC
V.09 11/24/2020