How do I cancel a window trade before it is executed if the price of the security fluctuates drastically?

You can view and cancel pending orders by selecting Order Status on the Accounts page—if the trade has not already been executed.

You can also use the cancel order limit function in a window trade to protect your order from being executed at a price that is significantly worse than the price at the time you entered your order.

How does a cancel order limit work?

You can automatically cancel window trades when prices move against your desired values by setting up a cancel order limit.

  • Buy Order

    If the value of securities in your window buy order goes up by an amount you set when we create a window order for you (your “cancel order limit”), we will cancel your window order. We do not cancel your window order if the value of the securities goes down. See example.

  • Sell Order

    If the value of securities in your window sell order goes down by an amount you set when we create a window order for you (your “cancel order limit”), we will cancel your window order. We do not cancel your window order if the value of the securities goes up. See example.

  • Buys and Sells In the Same Window Order

    We add up the amount that the securities in your window buy order have gone up and the amount that the securities in your window sell orders have gone down when we create a window order for you. If the total meets or exceeds the dollar value of your cancel order limit, we will cancel your window order. If you had sell orders where the value of the security went up or buy orders where the value of the security went down, we will subtract their amounts when we create a window order for you. See example.

How do I change a cancel order limit setting?

You can change your cancel order limit setting for an account and for a single transaction.

To change this setting for an account, select Settings, scroll down to the “Account Information,” select the Cancel Order Limit link and follow the instructions on the page.

To change this setting for a single transaction, select the Change link next to “Cancel Order Limit” on the Preview Order page and follow the instructions on the page.

Note: The initial setting for a new account for the cancel order limits is No Limit.

How do we calculate your cancel order limit if you place a window order with both buys and sells?

Here’s how we calculate your cancel order limit if you place a window order with both buys and sells. The example assumes that you are placing an order at 11:00 a.m. ET to buy $1000 of security A and to sell $500 of security B, and that you have set your cancel order limit at 5%. The order will be executed in the afternoon window.

  1. We add up the values of all your buys and sells separately.

    Your order when you placed it at 11:00 a.m. ET:

      Price-Per-Share Total Shares Total Value
    Buy security A $100 10 $1000
    Sell security B $100 5 $500

  2. We calculate the dollar value of your limit against whichever side is larger, your buys or sells.

    Your limit is 5%.
    Your buys at $1000 are larger than your sells at $500.
    5% of $1000 = $50

    Your order when you placed it at 11:00 a.m. ET:

      Price-Per-Share Total Shares Total Value
    Buy security A $100 10 $1000
    Sell security B $100 5 $500

  3. When the window closes, we add up how much your buys have moved up and your sells have moved down in value since you placed the order.

    (The cancel order limit does not apply when your buys lose value and your sells gain value.)

    Your order when window closes:

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Buy security A $100 $104 10 $40
    Sell security B $100 $98 5 $10
    Total $50  

  4. If the final total meets or exceeds the dollar value of your limit, we will cancel your order.

    If you had sells that went up or buys that went down, we will subtract their amounts when we calculate your total.

    The order is cancelled because the total combined price movements of buys and sells equals $50, your dollar limit.

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Buy security A $100 $104 10 $40
    Sell security B $100 $98 5 $10
    Total $50

  5. Now picture another scenario, using the same assumptions as in the first example.

    What happens if, between the time you place the order and the time the window closes, the securities you are buying go down in value, and the securities you are selling go up?

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Buy security A $100 $90 10 $100
    Sell security B $100 $102 5 $10
    Total $110

    The order is not cancelled because the buys went down and the sells went up. Even though your total price movement is $110, the price movement happened in directions that are not covered by the “Cancel Order Limit.” The limit is only triggered when buys go up and the sells go down by $50 or more.

How do we calculate your cancel order limit if you place a window order with buys only?

Here’s how we calculate your cancel order limit if you place a window order with buys only. The example assumes that you are placing an order at 11:00 a.m. ET to buy $500 of security A and $500 of security B, and that you have set your cancel order limit at 5%. The order will be executed in the afternoon window.

  1. We add up the values of all your buys.

    Your order when you placed it at 11:00 a.m. ET:

      Price-Per-Share Total Shares Total Value
    Buy security A $100 5 $500
    Buy security B $50 10 $500

  2. We calculate the dollar value of your limit against your total buys.

    Your limit is 5%.
    Your buys total $1000.
    5% of $1000 = $50

    Your order when you placed it at 11:00 a.m. ET:

      Price-Per-Share Total Shares Total Value
    Buy security A $100 5 $500
    Buy security B $50 10 $500

  3. When the window closes, we add up how much your buys have moved up in value since you placed the order.

    (The cancel order limit does not apply when your buys lose value.)

    Your order when window closes:

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Buy security A $100 $108 5 $40
    Buy security B $50 $51 10 $10
    Total $50

  4. If the total meets or exceeds the dollar value of your limit, we will cancel your order.

    The order is cancelled because the total price increased by $50, your dollar limit.

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Buy security A $100 $108 5 $40
    Buy security B $50 $51 10 $10
    Total $50

  5. Now picture another scenario, using the same assumptions as in the first example.

    What happens if, between the time you place the order and the time the window closes, the securities you are buying go down in value?

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Buy security A $100 $90 5 $50
    Buy security B $50 $48 10 $20
    Total $70

    The order is not cancelled because the securities went down in value. Even though your total price movement is $70, the prices went down and not up. The cancel order limit is only triggered when buys go up by $50 or more.

How do we calculate your cancel order limit if you place a window order with sells only?

Here’s how we calculate your cancel order limit if you place a window order with sells only. The example assumes that you are placing an order at 11:00 a.m. ET to sell $500 of security A and $500 of security B, and that you have set your cancel order limit at 5%. The order will be executed in the afternoon window.

  1. We add up the values of all your sells.

    Your order when you placed it at 11:00 a.m. ET:

      Price-Per-Share Total Shares Total Value
    Sell security A $100 5 $500
    Sell security B $50 10 $500

  2. We calculate the dollar value of your limit against your total sells.

    Your limit is 5%.
    Your sells total $1000.
    5% of $1000 = $50

    Your order when you placed it at 11:00 a.m. ET:

      Price-Per-Share Total Shares Total Value
    Sell security A $100 5 $500
    Sell security B $50 10 $500

  3. When the window closes, we add up how much your sells have gone down in value since you placed the order.

    (The cancel order limit does not apply when your sells gain value.)

    Your order when window closes:

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Sell security A $100 $92 5 $40
    Sell security B $50 $49 10 $10
    Total $50

  4. If the total meets or exceeds the dollar value of your limit, we will cancel your order.

    The order is cancelled because the total price has moved down by $50, your dollar limit.

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Sell security A $100 $92 5 $40
    Sell security B $50 $49 10 $10
    Total $50

  5. Now picture another scenario, using the same assumptions as in the first example.

    What happens if, between the time you place the order and the time the window closes, the securities you are selling go up in value?

    Price-Per-Share at: 11:00 a.m. ET 2:45 p.m. ET Shares Total Move
    Sell security A $100 $110 5 $50
    Sell security B $50 $52 10 $20
    Total $70