Yes, you can place a buy stop order on Fidelity, but it works differently than a regular buy order
A buy stop order is an instruction to buy a stock only after it reaches a price you set — and only if it keeps rising past that point. On Fidelity, you can set this up through their trading platform, but the mechanics are not intuitive because buy stops are less common than sell stops. The order sits inactive until the stock price touches your trigger price, at which point it converts to a market order and executes at whatever price the stock is trading at that moment.
The key difference from a regular buy order: you are not buying when ready. You are telling Fidelity to wait for a specific price movement first, then buy. This is useful if you want to enter a position only after a stock breaks through a resistance level, or if you want to buy into a stock that is already moving upward but you want to confirm the momentum first.
Key Takeaways
- Buy stop orders on Fidelity convert to market orders once the stock price reaches your trigger price, so the final execution price may be higher than you set.
- You place a buy stop through Fidelity's Active Trader Pro platform or the web trading interface by selecting "Stop" as the order type and setting a price above the current market price.
- Buy stops are typically used to enter a position after a stock breaks through resistance, not to protect an existing position like a sell stop does.
- The order remains active during regular market hours unless you cancel it or set an expiration date, and it will not execute during after-hours trading unless you specifically enable that option.
How to set up a buy stop order on Fidelity's web platform
Log into your Fidelity account and search for the stock you want to buy. Click the trade button next to the stock symbol. In the order entry screen, select "Buy" as the action, then look for the order type dropdown — this is usually set to "Market" by default. Change it to "Stop" or "Stop Limit" depending on whether you want the order to execute at any price once triggered, or only at a specific price range.
Enter your stop price — this is the price that will trigger the order to convert to a buy. Set it above the current market price; if you set it below, Fidelity will reject it because a buy stop only makes sense when the price is rising. You can also set the order to expire at the end of the day, at the end of the week, or to remain open until you cancel it (called a GTC or "good-til-canceled" order). Review the order summary and submit.
Once submitted, the order shows in your open orders list. It will remain there inactive until the stock price rises to your trigger price during market hours. At that moment, it converts to a market order and executes when ready, usually within seconds.
Buy stop versus buy limit: which one you actually need
A buy stop converts to a market order, meaning it will execute at whatever price the stock is trading at when your trigger price is hit. A buy limit is different — it sets both a trigger price and a maximum price you are willing to pay. If you set a buy limit at $50, the order will only execute if the stock is trading at $50 or lower.
For most traders using a buy stop, the goal is to enter after a breakout, so they accept whatever price comes with that execution. If you are worried about slippage — the gap between your trigger price and the actual execution price — use a buy stop limit instead. This gives you both a trigger price and a price ceiling, though it also means the order might not execute if the stock gaps up past your limit price.
On Fidelity, when you select "Stop Limit" as the order type, you will see fields for both the stop price and the limit price. The stop price is what triggers the order; the limit price is the maximum you will pay.
When a buy stop order will and will not execute
Buy stops execute only during regular market hours — 9:30 a.m. to 4 p.m. Eastern time, Monday through Friday. If the stock price hits your trigger price before the market opens or after it closes, the order will not execute until the next trading day. If you want the order to work during extended hours (4 p.m. to 8 p.m. and 4 a.m. to 9:30 a.m.), you must check the "Extended Hours" box when you place the order.
The order will also not execute if you have insufficient buying power in your account. Fidelity reserves the cash or margin needed to cover the order as soon as you submit it, so if your account balance drops below that amount before the trigger price is hit, the order will be canceled automatically.
If the market gaps up past your trigger price — for example, the stock closes at $45 and opens the next day at $52 — your buy stop will still execute, but at the open price of $52 or higher, not at your trigger price of $50. This is one of the risks of using a buy stop instead of a buy limit.
Canceling or modifying a buy stop order
You can cancel a buy stop order at any time before it executes by going to your open orders list and clicking the cancel button next to the order. On Fidelity's web platform, this is usually a red X or a "Cancel" link. The cancellation takes effect when ready during market hours, though it may take a few minutes to process if the market is very busy.
To modify an order — for example, to change the trigger price — you typically have to cancel the original order and place a new one. Fidelity does not allow you to edit a stop order in place. If you cancel and when ready place a new order, make sure you do this before the stock price reaches your original trigger price, or you may end up with two separate executions.
Common mistakes when using buy stops on Fidelity
The most common mistake is setting the trigger price too close to the current market price. If a stock is trading at $48 and you set a buy stop at $49, any small upward movement will trigger the order, even if it is just normal daily volatility and not a real breakout. Most traders set the trigger price at least 2 to 5 percent above the current price to filter out noise.
Another mistake is forgetting that a buy stop becomes a market order. If the stock is thinly traded or gaps up sharply, you might execute at a price significantly higher than your trigger price. Using a buy stop limit instead protects you, but it also means the order might not fill at all.
A third mistake is leaving the order active too long. If you set a GTC (good-til-canceled) order and forget about it, it can execute weeks or months later when you no longer want to buy. Set an expiration date if you only want the order active for a specific period, or check your open orders regularly.
Frequently Asked Questions
What is the difference between a buy stop and a sell stop?
A sell stop is triggered when the price falls below your set level and is used to protect a position you already own. A buy stop is triggered when the price rises above your set level and is used to enter a new position. Sell stops are much more common because most traders use them to limit losses.
Will my buy stop order execute if the stock gaps down after hitting my trigger price?
No. Once your trigger price is hit, the order converts to a market order and executes when ready at the current price. If the stock then gaps down, that does not affect the execution that already happened. The gap down would only matter if it occurred before your trigger price was hit.
Can I place a buy stop order on a stock I already own?
Yes. There is no rule against it. However, most traders do not do this because it does not make logical sense — if you already own the stock, buying more at a higher price is usually not a hedging strategy. You might do this if you are very bullish and want to add to your position on a breakout.
What happens to my buy stop order if the market closes for a holiday?
The order remains open and active. If you set it as a GTC order, it will carry over to the next trading day. If you set it to expire at the end of the day, it will expire on the last trading day before the holiday, not on the holiday itself.
Does Fidelity charge a commission for a buy stop order?
No. Fidelity does not charge commissions for stock trades, including buy stop orders. You pay no fee to place, modify, or cancel the order. The only cost is the price you pay for the stock itself when the order executes.