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A Cancel Order Limit protects your window trade from being executed at a price that is significantly worse than the price at the time you entered your order.

• Buy Order: If the value of securities in your window buy order goes up by an amount you set when we create a window order for you (your Cancel Order Limit), we will cancel your window order. We do not cancel your window order if the value of the securities goes down. See example.
• Sell Order: If the value of securities in your window sell order goes down by an amount you set when we create a window order for you (your Cancel Order Limit), we will cancel your window order. We do not cancel your window order if the value of the securities goes up. See example.
• Buys and Sells In the Same Window Order: We add up the amount that the securities in your window buy order have gone up and the amount that the securities in your window sell orders have gone down when we create a window order for you. If the total meets or exceeds the dollar value of your Cancel Order Limit, we will cancel your window order. If you had sell orders where the value of the security went up or buy orders where the value of the security went down, we will subtract their amounts when we create a window order for you. See example.

The Cancel Order Limit default setting for a new account is No Limit. If you wish to change the Cancel Order Limit for multiple accounts, you will need to make the change to each account individually.

To change your client’s Cancel Order Limit setting for an account:

1. Go to the client’s accounts page
2. Under More Info select View Client Settings
3. Scroll down to the Information About Client Accounts section
4. Under the Account name, select Cancel Order Limit
5. Set the Cancel Order Limit for the specific account from 2% to 10%, then select Continue
6. Select Yes to confirm the Cancel Order Limit change

To change your client’s Cancel Order Limit setting for a single transaction:

1. Place a Window Trade
2. On the Preview Order Page, next to Cancel Order Limit, select Change
3. Update your Cancel Order Limit for this trade, and select Submit
4. The new Cancel Order Limit will be displayed on the Preview Order Page and will only affect this trade
5. Select Place Order to complete the trade

Here’s how we calculate your cancel order limit if you place a window order with both buys and sells. The example assumes that you are placing an order at 11:00 AM to buy $1000 of security A and to sell $500 of security B, and that you have set your cancel order limit at 5%. The order will be executed in the afternoon window.

1. We add up the values of all your buys and sells separately.

Your order when you placed it at 11:00 AM:

2. We calculate the dollar value of your limit against whichever side is larger, your buys or sells.

Your limit is 5%.
Your buys at $1000 are larger than your sells at $500.
5% of $1000 = $50

Your order when you placed it at 11:00 AM:

3. When the window closes, we add up how much your buys have moved up and your sells have moved down in value since you placed the order.

(The cancel order limit does not apply when your buys lose value and your sells gain value.)

Your order when window closes:

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$104	10	$40
Sell security B	$100	$98	5	$10
Total				$50

4. If the final total meets or exceeds the dollar value of your limit, we will cancel your order.

If you had sells that went up or buys that went down, we will subtract their amounts when we calculate your total.

The order is cancelled because the total combined price movements of buys and sells equals $50, your dollar limit.

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$104	10	$40
Sell security B	$100	$98	5	$10
Total				$50

5. Now picture another scenario, using the same assumptions as in the first example.

What happens if, between the time you place the order and the time the window closes, the securities you are buying go down in value, and the securities you are selling go up?

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$90	10	$100
Sell security B	$100	$102	5	$10
Total				$110

The order is not cancelled because the buys went down and the sells went up. Even though your total price movement is $110, the price movement happened in directions that are not covered by the “Cancel Order Limit.” The limit is only triggered when buys go up and the sells go down by $50 or more.

Here’s how we calculate your cancel order limit if you place a window order with buys only. The example assumes that you are placing an order at 11:00 AM to buy $500 of security A and $500 of security B, and that you have set your cancel order limit at 5%. The order will be executed in the afternoon window.

1. We add up the values of all your buys.

Your order when you placed it at 11:00 AM:

2. We calculate the dollar value of your limit against your total buys.

Your limit is 5%.
Your buys total $1000.
5% of $1000 = $50

Your order when you placed it at 11:00 AM:

3. When the window closes, we add up how much your buys have moved up in value since you placed the order.

(The cancel order limit does not apply when your buys lose value.)

Your order when window closes:

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$108	5	$40
Buy security B	$50	$51	10	$10
Total				$50

4. If the total meets or exceeds the dollar value of your limit, we will cancel your order.

The order is cancelled because the total price increased by $50, your dollar limit.

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$108	5	$40
Buy security B	$50	$51	10	$10
Total				$50

5. Now picture another scenario, using the same assumptions as in the first example.

What happens if, between the time you place the order and the time the window closes, the securities you are buying go down in value?

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$90	5	$50
Buy security B	$50	$48	10	$20
Total				$70

The order is not cancelled because the securities went down in value. Even though your total price movement is $70, the prices went down and not up. The cancel order limit is only triggered when buys go up by $50 or more.

Here’s how we calculate your cancel order limit if you place a window order with sells only. The example assumes that you are placing an order at 11:00 AM to sell $500 of security A and $500 of security B, and that you have set your cancel order limit at 5%. The order will be executed in the afternoon window.

1. We add up the values of all your sells.

Your order when you placed it at 11:00 AM:

2. We calculate the dollar value of your limit against yourtotal sells.

Your limit is 5%.
Your sells total $1000.
5% of $1000 = $50

Your order when you placed it at 11:00 AM:

3. When the window closes, we add up how much your sells have gone down in value since you placed the order.

(The cancel order limit does not apply when your sells gain value.)

Your order when window closes:

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$92	5	$40
Sell security B	$50	$49	10	$10
Total				$50

4. If the total meets or exceeds the dollar value of your limit, we will cancel your order.

The order is cancelled because the total price has moved down by $50, your dollar limit.

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$92	5	$40
Sell security B	$50	$49	10	$10
Total				$50

5. Now picture another scenario, using the same assumptions as in the first example.

What happens if, between the time you place the order and the time the window closes, the securities you are selling go up in value?

Price per share at

	11:00 AM	2:45 PM	Shares	Total move
Buy security A	$100	$110	5	$50
Sell security B	$50	$52	10	$20
Total				$70