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Trading made simple: How to trade stocks and ETFs

Get familiar with trading at Fidelity.

Watch just how easy it is to place a stock and ETF trade with tips on how to choose an order type and order duration.

Check out additional resources:


Step-by-step guide

1. Select the account you want to trade in. decorative image
2. Enter the trading symbol. decorative image
3. Select Buy or Sell. decorative image
4. Choose between Dollars and Shares, then enter an amount. decorative image
5. Choose an order type:  Market or Limit. Use the definitions to help make a choice. Read more about using order types  decorative image
6. For limit orders, decide how long the order will stay open. Day or Good 'til Canceled (GTC). Use the definitions to help make a choice. decorative image

After you've entered these details, preview your order and if all looks good, click Place Order and you're done placing your trade.

Frequently Asked Questions

Order types

An order

An order provides direction on how you want your trade executed.

Trading order impact

When entering a trade, your brokerage account will prompt you to specify the type of order you would like to make. Depending on your strategy, different order types can affect the price and time at which you might buy or sell.

Market order

A market order is the quickest way to place a trade by executing at the next available price when the market is opened. Market orders put priority on execution, but don't guarantee price.

Limit order

A limit order sets the maximum price at which you’re willing to buy or the minimum price at which you’re willing to sell. Limit orders target price, but don't guarantee execution.

Time in force

Time in force

Time in force (also known as order duration) is how long you'd like an order to stay open before it's executed or expires. These are several types of time-in-force orders: day orders, fill or kill (FOK), immediate or cancel (IOC), and good 'til canceled (GTC).

Day order

A day order is an order that cancels the trade if it's not executed by the close of the trading day.

Good 'til canceled explained

A good 'til canceled order is a time-in-force limitation that can be placed on a stock or ETF order and defaults to an order expiration date of 180 calendar days from the order entry date at 4 p.m. ET. You may select your own order expiration date and/or time, up to 180 calendar days from the order entry date. If all or part of your order is not executed by the date and/or time you've selected for expiration, any open portions of your order will be canceled.

Settlement

Owning the stock after a trade

After a trade is placed you will own the stock, exchange-traded fund, or option in 1 business day, depending on the security traded. If selling a security, your money will be settled within 1 business day.

Settlement date

The settlement date is when your trade is completed and the money for the trade is actually debited or credited to your account.

On Settlement date

On the settlement date securities that you bought, or any cash that you got if you sold securities, is all yours and will appear in your account for you to hold onto or initiate a new trade.

Timing for trade settlement

Stock, ETF, and options trades settle 1 business day after the trade date, also described as T+1. For example, if you place an order to buy a call option that is executed on Tuesday, you will see your account debited to pay for the transaction or credited from the proceeds of a sell on Wednesday.

Why is the trade settlement date important?

The trade settlement date is important because it's the date when you actually own the stock or exchange-traded fund you've bought, or if you've sold a security, it's the date when you can expect to access the cash from the sale.

Trading violations

Avoid trading violations

To help avoid trading violations, it's important to understand and pay attention to settlement dates so you aren't attempting to use unavailable funds to cover a purchase. You can avoid day trading violations by not attempting to buy and sell in the same day, before a trade is settled.

Learn more about Avoiding cash account trading violations and Requirements for day traders.

After hours-trading

Orders can be entered and executed in extended-hours trading, which takes place between 7:00 a.m. and 9:28 a.m. ET, and between 4:00 p.m. and 8:00 p.m. ET. However, due to a lack of liquidity in extended-hours trading, your order may be executed in whole or in part, or you may not receive as favorable a price as when the core market session is open. Orders can also be placed before the market opens or after the market closes, but be designated for the core market hours of 9:30 a.m. to 4 p.m. ET. In those circumstances, orders will be queued up and will begin trading once the core market hours begin.

Ready to place a trade?

Choose an account. Then enter your order quickly and easily.

Place a trade
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More to explore

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

Control and restricted securities must be sold in accordance with SEC Rule 144 requirements. Additional documentation, approval, and conditions must be met before selling, which may limit your ability to sell at a specified time.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

Investing involves risk, including risk of loss.

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