How to Set a Stop Loss on Fidelity
In the world of investing, managing risk is crucial for long-term success. One effective way to mitigate risk is by setting a stop loss, which is an order placed to sell a security when it reaches a certain price. Fidelity, a well-known brokerage firm, offers a user-friendly platform for investors to set stop losses. In this article, we will guide you through the process of how to set a stop loss on Fidelity.
Step 1: Log in to Your Fidelity Account
The first step in setting a stop loss on Fidelity is to log in to your account. Go to the Fidelity website and enter your username and password. If you haven’t logged in before, you may need to complete a two-factor authentication process to ensure the security of your account.
Step 2: Navigate to the Trade Page
Once you are logged in, navigate to the trade page. This can usually be found in the main menu of your account. On the trade page, you will see a list of your investments and the option to place a trade.
Step 3: Select the Security You Want to Set a Stop Loss On
From the list of investments, select the security on which you want to set a stop loss. This could be a stock, ETF, or option. Make sure you have the correct symbol for the security you are trading.
Step 4: Choose the Type of Stop Loss Order
Fidelity offers two types of stop loss orders: stop market and stop limit. A stop market order will sell the security at the next available price, while a stop limit order will sell the security at a specified price or better. Choose the type of stop loss order that best suits your investment strategy.
Step 5: Enter the Stop Price
Next, enter the stop price at which you want to trigger the stop loss order. This is the price at which the order will be executed. Be sure to enter a price that is below the current market price for a stop loss sell order and above the current market price for a stop loss buy order.
Step 6: Set Additional Order Details
Fidelity allows you to set additional order details, such as the order duration and any additional conditions. For example, you can choose to have the order remain open until the end of the trading day or until a specific date. You can also set a maximum price for a stop limit order.
Step 7: Review and Place the Order
Before placing the order, review all the details to ensure they are correct. Once you are satisfied, click the “Place Order” button to submit your stop loss order. Fidelity will then execute the order at the specified stop price.
Conclusion
Setting a stop loss on Fidelity is a straightforward process that can help protect your investments from significant losses. By following these steps, you can effectively manage risk and make informed investment decisions. Remember to regularly review and adjust your stop loss orders as needed to align with your investment strategy.
