What is the significance of the activation price in the context of stop limit orders on TD Ameritrade?

3 answers

• NATK.Nov 13, 2022 · 3 years ago
  The activation price is a crucial component of stop limit orders on TD Ameritrade. It is the price at which the order is triggered and becomes active. When the market price reaches or surpasses the activation price, the order is sent to the exchange for execution. Without the activation price, the order would not be triggered and would remain inactive. This allows traders to set specific price levels at which they want their orders to be executed, providing more control over their trades.
  493

  247
• Elian CesarNov 20, 2024 · a year ago
  The activation price plays a vital role in stop limit orders on TD Ameritrade. It acts as a trigger point for the order to become active and start executing. Once the market price reaches or exceeds the activation price, the order is sent to the exchange for processing. This feature allows traders to automate their trades and take advantage of favorable price movements. By setting an activation price, traders can ensure that their orders are executed only when certain conditions are met, reducing the risk of executing trades at unfavorable prices.
  553

  185
• DenkiJun 28, 2021 · 5 years ago
  When it comes to stop limit orders on TD Ameritrade, the activation price is a game-changer. It serves as the threshold that must be crossed for the order to become active. Once the market price reaches or surpasses the activation price, the order is sent for execution. This feature allows traders to set specific price levels at which they want their orders to be triggered, providing more control over their trades. It's a powerful tool that helps traders automate their strategies and take advantage of market movements without constantly monitoring the market.
  565

  142