2019: How to enter limit or stop loss orders on Ally Invest for stocks and ETFs? How much broker is charging for buy and sell stop loss and limit orders?

So you’ve just opened an Ally Invest account and are ready to start trading. Most investors can probably remember placing their first trade and noticing all the different order types they could choose from. Limit and Stop Limit (or Limit Loss) orders are two of the most popular order types when it comes to trading stocks, and in this article we will go over what they are and how to place them on your Ally Invest account.


What is a Limit Order?

A limit order to buy stock is an order type where you specify the highest price per share you’re willing to pay (the limit price) for however many shares you are looking to buy. Once submitted, Ally Invest will route your order to the market makers and will try to get it filled at a price below your limit price if possible. If not, they will try to get it filled at your limit price, but under no circumstance would you have to pay more than the limit price. If they can’t fill your order at or below your limit price, it will simply remain open until it gets filled, expires, or you cancel it.

In the screenshot below, for example, you can see we placed a limit order to purchase 100 shares of the iShares Core MSCI Emerging Markets ETF (IEMG) with a limit price of $51 that expires at the end of the trading day. We’d like to purchase 100 shares of the ETF at a price per share of $51 or better. Our limit price is slightly below the last trading price, so our order may not get filled right away.


Ally Invest Limit Order


A limit order to sell stock works the same way except the logic is reversed. The limit price on a sell limit order would represent the lowest price you’re willing to accept in exchange for your shares and Ally wouldn’t execute your order unless they could get you your limit price or a higher one.


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What is a Stop Limit Order?

A stop limit (limit loss) order is another popular order type that you can use to minimize your losses and lock in unrealized gains, and still hold onto a stock if it continues to rise. You enter two prices for a stop limit order, a stop price and a limit price. Just as in the prior example, the limit price for a sell order here is the lowest price you’re willing to sell your shares for, but your stop limit order isn’t active until the stock price reaches your stop price.

Continuing from our last example, let’s say our limit order to buy 100 shares of IEMG was filled and the stock has gone up to $54 now. We don’t want to sell it just yet because we don’t think IEMG’s rally is done, but we want to make sure if the stock does change direction that we don’t lose all our gains. So we enter a stop limit order to sell our shares at a price of $52.50 or better and a stop price of $53.25. This means Ally will only submit our order to the market makers to execute if and when IEMG’s price comes down to $53.25, and we would make at least $150 ($1.50 per share) on this bet.


Ally Invest Stop Limit Order


A stop limit order to buy shares would work the same way except the logic is reversed. The buy version of this order type would allow you to place a limit order to buy shares that only becomes active once the stock price rises to your stop price.


Ally Fee on Limit and Stop Limit Orders

Ally Invest is charging $0 commission for both Limit and Stop Limit orders.


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