Problem on Fidfolio/market order
Summary of User’s Concern and Solutions:
- The main problem reported by the user was receiving an error when attempting to buy stocks in Fidfolios, indicating that the stock was illiquid and requiring a limit order instead of a market order, which led to difficulty in identifying the security.
- Fidelity suggested using the Stock Screener tool, which has various criteria settings to help narrow down stock selections, including tracking a security’s volume.
- They explained that market orders are not allowed for securities with a 20-Day Average Daily Volume of less than 5,000 shares or for those missing volume data, necessitating the use of limit orders for illiquid stocks.
- Fidelity advised that users can research a security’s volume by pulling up a quote on any of their platforms.
Here’s the full thread
I received an error this morning attempting to buy a basket of stocks in Fidfolios. The error said that the stock was illiquid and I would have to place a limit order, not a market order. But I’m having trouble identifying the security.
Since I’m running a stock screen to generate my list, it would be helpful to know if there are parameters to identify these stocks.
Thanks.
Hey @mattgumm, I appreciate you dropping by.
It sounds like you’re researching stocks on our Stock Screener tool to purchase using our Solo FidFolios product. In this case, I am happy to provide some additional insight.
The Stock Screener offers a wide range of criteria settings, including those that track a securities volume, to help narrow down your stock selections. You can access the criteria choices on the left-hand side of the Stock Screener.
As you mentioned, one of the securities you are attempting to purchase as part of your basket must be illiquid. Currently, market orders are not permitted for securities with a 20-Day Average Daily Volume of less than 5,000 shares or for securities missing Average Daily Volume data (for example, a security that has not traded for an entire business day or more). You must use a limit order to purchase these illiquid securities. Due to volume movement, securities can move in and out of this requirement.
You can research a security’s volume by pulling up a quote on any of our platforms.
Please let us know if you have any additional questions. We are happy to help!🟢
That makes sense. I will give it a try!
Sounds like a plan! 🟢