Trading stocks is a high-risk high-reward game, one in which if you take your eye off the ball even for a second it can cost you thousands of dollars. Not everyone who trades has the time to constantly watch their feed for fluxuations and sudden downturns, but as we all know, the stock market waits for no man.
Playing the stock market needs strong will and commitment, you either need to do your research and know what you’re putting your money on or have a great gut instinct, especially if you start trading in blockchunks. When it comes to buying or selling 100+ of a stock you’ll need to place an order. Sometimes though you’ll second guess yourself or learn some vital piece of information just after you’ve already placed an order. If your order hasn’t been filled yet it’s time to cancel and re-think, but cancelling orders could realistically incur a charge, however in-short, Questrade does not charge for canceled orders as long as they haven’t be executed. If they already have been filled, well, you can’t cancel a buy after you’ve already exchanged goods.
Does Questrade charge for canceled orders is a perfectly valid question and one which you may be surprised by the fact that a lot of people tend to ask exactly that. While fees are usually associated with all aspects of trading, charging someone what is essentially a penalty fee for making the wrong decision ends up being counter productive. People tend to think twice about everything if a wrong choice ends up costing them money. When it comes to trading there’s enough double thinking already, without adding more to pile. So, quite rightly, Questrade decided to do away with cancelation fees on an order.
Why would I cancel an order?
Canceling orders is probably more common than you’d think and can happen for a few reasons. Let’s remember that orders are basically simple instructions to buy or sell at a particular price through the stock, bond, commodity and financial markets as well as the cryptocurrency exchange. As any market can be volatile and influenced by a number of factors, finding out new information that will affect your yield post order decision is a real possibility.
For example, in the morning you could place an order to buy 100 Tesla shares and by midday you’ve found out Elon Musk has embarrassed himself and his company, you check your order and find luckily none of the 100 shares have been bought yet so time to cancel that order and re-think.
You could also place an order to sell 100 shares in oranges then turn on the TV to find out there’s going to be an orange shortage, better hold onto those orange shares a bit longer. In both these incidences you’ll be paying no fees and be able to recalculate your moves for free.
Do I pay commission on orders though?
Paying commission on orders is only valid if the order has been filled. If the order has been canceled then no commissions are due. Be wary of commision rules though and try not to be caught out by them. If you’re placing an order which takes multiple days to be fully executed you’ll be charged commission fees for multiple days. So try to think of commission as a daily price per order. A nicer commission fact is that you don’t pay any on IPOs (initial public offerings) or on any new Questrade offered issue.
Are there any other order types
While an order is the buying of 100 or more options there are various other types of orders to know about, but be careful, they aren’t exactly the same. It might seem confusing, but this sentence will help clear things up, �I order you to make an order’. Canceling those alternative orders incur no fees whatsoever as they’re more instructions of what to do with your own portfolio. Bracket orders for example are one type of these alternative orders, giving you an option to put stop and limits on your stocks, simply giving you calculated exit prices. Other order types include locked orders, limit to open/close, anonymous orders, fill or kill, minimum quantity and iceberg to name a few.
Hopefully you can walk away form this article and won’t have to ask, Does Questrade charge for canceled orders?’ again. Just remember, if you change your mind reverse it. Act fast, the market waits for no man. Make calculated not emotional decisions. And above all do your research.