Trailing Stop-on-Quote Orders

A trailing stop-on-quote order is a trailing sell stop-on-quote that fluctuates by a given percent or point (dollar) amount allowing for the potential to lock in more profit on the upside while still protecting yourself to the downside. If your order triggers, the order will be placed as a market order. Trailing stop-on-quote order executions are based on the bid (sell orders) and ask (buy orders) price of the stock.

How to place a trailing percent sell stop-on-quote order:

1. Click the Trade tab. Make sure Stock is selected from the menu bar on the left.
2. Select Sell from the first drop-down menu.
3. Enter the quantity and symbol.
4. Select trailing stop-on-quote as the order type.
5. Set the trailing stop-on-quote amount.

Note: Do not translate the percent into decimal format. Enter 1 for 1%; do NOT enter .01 for 1%.

6. Select Percent from the Trail Type drop-down menu. The minimum for any percent trailing sell stop-on-quote order is 1%.
7. Select Duration (Day Order or Good 'til Canceled).
8. Click "Review Order".
9. Review the order and click "Place Order".

How to place a trailing point sell stop-on-quote order:

1. Click the Trade tab. Make sure Stock is selected from the menu bar on the left.
2. Select Sell from the first drop-down menu.
3. Enter the quantity and symbol.
4. Select trailing stop-on-quote as the order type.
5. Set the trailing stop-on-quote amount.

Note: 2.00 points equals $2; .50 points equals 50 cents.

6. Select Points from the Trail Type drop-down menu. The minimum for any point trailing sell stop-on-quote order is $.01.
7. Select Duration (Day Order or Good 'til Canceled).
8. Click "Review Order".
9. Review the order and click "Place Order".

When will the trigger price change?

Trailing Sell Stop-on-Quote Orders

If the difference between the stock price and trigger price exceeds the trailing stop-on-quote amount, then the trigger price will be adjusted. The new trigger price will be determined by subtracting the Trail Amount from the stock's last price.

Trailing Buy to Cover Stop-on-Quote Orders

If the difference between the stock price and trigger price exceeds the trailing stop-on-quote amount, then the trigger price will be adjusted. The new trigger price will be determined by adding the trail amount to the last price.

Will Scottrade adjust my trailing stop-on-quote order if the stock goes ex-dividend?

Yes, Scottrade will adjust the trigger price for your trailing stop-on-quote order if the stock goes ex-dividend. For trailing stop-on-quote sell and trailing stop-on-quote buy to cover orders, the trigger price will be reduced by the amount of the dividend. This applies to normal dividends only; special dividends can result in order cancellation.

Stop-on-Quote and Stop-Limit-on-Quote Requirements

Stop-on-quote orders must be placed at least .10 below the current bid or above the current ask.

Scottrade has established this guideline due to the possibility of the order being invalid if the market price moves below the designated sell stop price or above the buy stop price.

Note: Stop-on-quote and stop-limit-on-quotes are not accepted for Bulletin Board/Pink Sheets orders through the internet site.

Watch Trading and Account Management in the Trading Website to see a demonstration of how to place a stock order and complete other tasks in the Scottrade Trading Website. To learn more about using different order types to enhance your trading, watch the Understanding Basic and Advanced Orders event recording.

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