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FINRA Rule 5350 (Stop Orders) which applies to orders in NMS stocks and OTC Equity Securities defines a "stop order" as an order to buy (or sell) that becomes a market order to buy (or sell) when a transaction occurs at or above (below) the stop price. A "stop limit order" is an order to buy (or sell) that becomes a limit order to buy (or sell) at the limit price when a transaction occurs at or above (below) the stop price. As a result, the default trigger setting for stop and stop limit orders placed on equity securities on the TradeStation trading platform is Single Trade Tick (STT), whereby one trade tick must print within your stop price to trigger your stop. Therefore, by placing a stop or stop limit order on the TradeStation trading platform with the default trigger setting unchanged, you are placing a "stop order" or "stop limit order" per the FINRA definition.
The TradeStation trading platform does provide the ability to choose alternative order trigger methods. By changing the trigger type from Single Trade Tick (STT) to an alternative trigger method, you are no longer placing a "stop order" or "stop limit order" per the FINRA definition, but rather will be placing a stop + modifier order or a stop limit + modifier order where the modifier is the alternative trigger type. The trigger type used for your order is recorded and displayed in the platform for your convenience (for example, in the Advanced Options column of the Trade Manager – Orders screen). The following provides a description of each available trigger type:
TradeStation Group, Inc. Affiliates: All proprietary technology in TradeStation is owned by TradeStation Technologies, Inc. Equities, equities options, and commodity futures products and services are offered by TradeStation Securities, Inc. (Member NYSE, FINRA, NFA and SIPC).