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.
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:
To change your client’s Cancel Order Limit setting for a single transaction:
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.
Your order when you placed it at 11:00 AM:
Price per share |
Total shares |
Total value |
|
Buy security A | $100 | 10 | $1000 |
Sell security B | $100 | 5 | $500 |
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:
Price per share |
Total shares |
Total value |
|
Buy security A | $100 | 10 | $1000 |
Sell security B | $100 | 5 | $500 |
(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 |
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 |
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.
Your order when you placed it at 11:00 AM:
Price per share |
Total shares |
Total value |
|
Buy security A | $100 | 5 | $500 |
Buy security B | $50 | 10 | $500 |
Your limit is 5%.
Your buys total $1000.
5% of $1000 = $50
Your order when you placed it at 11:00 AM:
Price per share |
Total shares |
Total value |
|
Buy security A | $100 | 5 | $500 |
Buy security B | $50 | 10 | $500 |
(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 | ![]() |
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 | ![]() |
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.
Your order when you placed it at 11:00 AM:
Price per share |
Total shares |
Total value |
|
Buy security A | $100 | 5 | $500 |
Sell security B | $50 | 10 | $500 |
Your limit is 5%.
Your sells total $1000.
5% of $1000 = $50
Your order when you placed it at 11:00 AM:
Price per share |
Total shares |
Total value |
|
Buy security A | $100 | 5 | $500 |
Sell security B | $50 | 10 | $500 |
(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 | ![]() |
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 | ![]() |
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 | ![]() |