Are you getting a Fidelity error (020906) when placing a sell order for a stock? This error occurs when you attempt to set a limit order and the price you have entered is significantly different from the current market price.
If the limit price you have entered is too far from the current stock price, it may be considered a risky or unusual trade, and the order may be rejected.
In that case, Fidelity will give you one of these two errors:
(020906) The limit price you entered is too far away from the last trade for this security. For sell limit orders on stocks trading between $5 – 10.00, the sell limit price cannot be greater than $15.00.
Error: (000906) The limit price you have entered is too far away from the Last Trade price for this security. Please use the following guidelines when entering your limit price: For buy limit orders in which your limit price is below the current Last Trade price, your limit price can be no more than 50% away from the last trade. For sell limit orders in which your limit price is above the current Last Trade price, your limit price can be no more than 50% away from the Last Trade price.
You can place a Good ‘Til Canceled (GTC) order on Fidelity for a stock that you wish to sell when it hits a specific price, but if the limit price is more than a certain amount from where the stock is currently trading, Fidelity will not let you place that order.
How to Fix Fidelity Error “020906” and “000906”
The workaround to this problem is to reduce the limit price you’ve entered. Ensure it is within the current price that the stock is trading at. You can manually adjust this sell order as the stock price move closer to your limit order.
Your limit order can always be modified if the current market price isn’t too close to it.
For example: ticker ABC is currently trading at $10 and you wish to sell it at $30. Unfortunately, Fidelity won’t allow you to put in that limit sell order because it is too wide. You can fix this by adjusting the limit order to $19. When the stock price reaches around $17 or 18, you can edit your limit order and move it further out.
Im just gonna say, that this should be fixed. I mean, what you want me to place a good til cancelled order closer than the value where I would like to take profit at? and then go in manually when its close and CHANGE IT FURTHER? haha you’re playing with fire there. This needs to be addressed for gtc limit orders on fidelity. That’s not a safe way to trade, or very good advice to suggest a “deviation” from your planned trade to accommodate your exchange? I use Fidelity, it is my primary brokerage firm. They need to address this.
Thank you for your consideration,
Mr. Storm