when i place a stop market order. I put the duration "good till canceled." For TD ameritrade, the default is 90 days. So my stop market sell order will execute no matter what for the next 90 days when the price either hit the market price or below.
Orders, once submitted to exchanges, are not managed anymore by the brokers. If a Stop Order is sent to an exchange, what happens to that order is no longer the broker responsibility. When a Stop Order get triggered, the broker has no control on the price it get filled. So yes, if the stop trigger price is 19$ it can get filled at 5$. But chances are, the exchange, depending of the situation and the reason why the price went down to 5$, may call for the obvious error rule.
or no error at all. I’ve seen plenty of stocks that gap down big due to some bad news or something. So the stop market order work like it is intended but not the desire price you want.
Wrong - Logic think - did you not read above what @Bad_Badness said. You are living in a false sense of security and obviously were not long during 911 or you would have known better. In the depth of all that paperwork you signed with TD it states the opposite that you will never be guaranteed on any fill.
So you are saying I put a sell “stop market” order for $19 for good till canceled and the current price is $20 at the closing. the next day, it gap down way below $19. So it won’t get filled? And if it won’t get filled, can you answer why?
Not quite. You are assuming the exchange has a native market or native stop order. If non native the broker must submit a limit price. Of course with TD they are selling your flow so it doesn’t go to an exchange and you’re setting yourself up for a garbage fill but that’s a story for another day.
Don’t confuse GTC and stops. While the vast vast vast majority of stops will get filled, there are circumstances they won’t.
I’m not confused about GTC or stops. I know what they are. Please elaborate on circumstances why they won’t get filled?