What a buy stop order is and how it works on Fidelity
A buy stop order is an instruction to purchase a stock automatically once its price rises to a level you set in advance. You place the order at a price higher than the current market price, and Fidelity executes the purchase only when the stock trades at or above that trigger price. This is the opposite of a sell stop order, which sells when price falls.
Buy stops are commonly used when you want to enter a position only if a stock breaks through a resistance level, or when you want to buy a stock that's already moving upward but only if it confirms strength by reaching a certain price. Once the trigger price is hit, Fidelity converts the buy stop into a market order (or limit order, depending on how you set it up), and the purchase happens at the next available price.
The key difference from a regular buy order: with a buy stop, nothing happens until the price threshold is crossed. You don't own the stock until that moment arrives. If the price never reaches your trigger level, the order sits open until you cancel it or it expires.
Key Takeaways
- A buy stop order on Fidelity triggers a purchase only when the stock price rises to the level you specify, not before.
- You can place a buy stop through Fidelity's website or mobile app by selecting "Buy Stop" as the order type when entering a trade.
- Buy stops can be set as market orders (buy at any price once triggered) or stop-limit orders (buy only within a price range you set).
- The order remains open until the trigger price is hit, the order expires, or you cancel it manually.
- Fidelity charges no commission on stock trades, but the order itself does not may provide execution at your exact trigger price.
How to place a buy stop order on Fidelity's website
Log into your Fidelity account and navigate to the Trade tab. Search for the stock you want to buy, then click on it to open the order entry screen. In the order type dropdown, select "Buy Stop" instead of the default "Buy" option.
Enter the number of shares you want to purchase. Then enter your stop price—the price at which you want the order to trigger. This price must be higher than the current market price; if you enter a price below the current price, Fidelity will reject the order or convert it to a regular buy order. You can also choose whether the order should execute as a market order (buy at any price once triggered) or as a stop-limit order (buy only if the price stays within a range you define). Set your order duration—day order (expires at market close) or good-till-canceled (remains open until you cancel it or it expires after 60 days). Review the order summary and click "Place Order" to submit it.
Using the Fidelity mobile app to set up a buy stop
Open the Fidelity mobile app and tap the Trade icon at the bottom of the screen. Search for and select the stock you want to buy. Tap "Buy" to open the order entry screen, then tap the order type field and change it from "Buy" to "Buy Stop."
Enter your share quantity and stop price. The stop price must be above the current market price. Choose whether you want a market order or stop-limit order, set your time frame (day or good-till-canceled), and review the order details. Tap "Place Order" to submit. The order will appear in your open orders list, and you can monitor it or cancel it at any time before the trigger price is reached.
Buy stop versus buy limit: which one to use
A buy stop triggers when price rises to your level, then executes as a market order—meaning you buy at whatever price is available at that moment. A buy limit sets a maximum price you're willing to pay and waits for the stock to drop to that price or lower. These serve opposite purposes: buy stops are for entering on strength; buy limits are for entering on weakness.
A stop-limit order combines both: it triggers at your stop price but then only executes if the price stays within a limit range you set. For example, you could set a buy stop-limit to trigger at $50 but only buy if the price is between $50 and $51. This gives you more control but also means the order might not fill if the price jumps past your limit range after triggering.
Choose a buy stop if you believe the stock will continue rising once it breaks through a certain level. Choose a buy limit if you want to enter at a lower price and are willing to wait. Choose a stop-limit if you want to trigger on strength but also cap how much you'll pay.
What happens after your buy stop order triggers
Once the stock price reaches or exceeds your stop price, Fidelity automatically converts the order into a market order (or limit order, if you chose stop-limit). The purchase then executes at the next available price. You will own the shares and they will appear in your account within the standard settlement period—usually two business days for stocks.
If the stock price gaps past your trigger price very quickly, a market buy stop may execute at a price higher than your stop price, because the order becomes a market order and fills at whatever price is available. If you want to avoid this, use a stop-limit order instead, which will only fill within your specified price range. If the price jumps past your limit, the order will not fill and will remain open or cancel depending on your settings.
Canceling or modifying a buy stop order
You can cancel a buy stop order at any time before it triggers. Log into Fidelity, go to the Orders section, find the open buy stop order in your list, and click "Cancel." The order will be removed immediately and you will not be charged. You can also modify an open order by clicking "Edit," changing the stop price or share quantity, and resubmitting.
If the order has already triggered and converted to a market order, you cannot cancel it—the purchase will proceed. Once the order fills and you own the shares, you can sell them at any time using a regular sell order or a sell stop order if you want to set an exit price in advance.
Common mistakes to avoid with buy stop orders
Do not set your stop price below the current market price. Fidelity will reject the order or treat it as a regular buy order. Remember that a buy stop is not a may provide of execution at your exact stop price—once triggered, it becomes a market order and may fill higher. If you want to cap your purchase price, use a stop-limit order instead.
Do not forget to cancel orders you no longer want. Open buy stops remain active until they trigger, expire, or you cancel them. If you change your mind about the trade, close the order manually to avoid an accidental purchase. Also be aware that buy stops do not work during pre-market or after-hours trading on Fidelity unless you have enabled extended-hours trading on your account.
Frequently Asked Questions
Can I set a buy stop order for a stock that's already at a high price?
Yes. Your stop price just needs to be higher than the current market price. If you believe a stock will continue rising after breaking through a certain level, you can set the stop price well above the current price. The order will wait until the stock reaches that level before triggering.
What's the difference between a buy stop and a buy stop-limit order?
A buy stop becomes a market order once triggered, so it will fill at whatever price is available—possibly higher than your stop price. A buy stop-limit adds a price cap: it triggers at your stop price but only fills if the price stays within your limit range. Stop-limit orders offer more control but may not fill if the price jumps past your limit.
Does Fidelity charge a commission on buy stop orders?
No. Fidelity charges no commission on stock trades, including buy stop orders. You pay no fee to place, modify, or cancel the order. You only pay the bid-ask spread when the order executes.
What happens if my buy stop order doesn't trigger by the end of the day?
If you set it as a "day" order, it will expire at market close and be canceled automatically. If you set it as "good-till-canceled," it will remain open and active until the trigger price is reached, you cancel it, or it expires after 60 days of inactivity.
Can I use a buy stop order during pre-market or after-hours trading?
Buy stops normally work only during regular market hours (9:30 a.m. to 4 p.m. ET). If you have extended-hours trading enabled on your Fidelity account, you may be able to place buy stops that trigger during pre-market or after-hours sessions, but availability and execution are less reliable outside regular hours.