Generally when you buy a stock, you specify the order size using a share amount. With the Cash Quantity feature, you can specify the size of the buy order using a cash amount instead of the number of shares. When you use Cash Quantity for the order size, the cash value drives the number of shares. If the share price moves, the number of shares is adjusted to accommodate the entered cash amount.
To use cash quantity for a stock order:
- Toggle the Size Wand to the Cash button (if your base currency is USD, the toggle reads Shares | USD).
- Specify the cash amount you want to spend for the order.
You can see the estimated share amount below the Quantity value. When the order fills, it will fill as close as possible to your specified amount, rounding down to the nearest whole share.
If you prefer to trade cash amounts with even more precision, you can enable fractional trading. Once enabled, our system will submit your order to the nearest whole share and, with the remaining amount, purchase a fraction of a share to ensure that we use your entire cash amount for the order. Additionally, you can elect to purchase shares directly in fractions. See: How do I enable fractional shares?
Currently, only BUY orders are supported for Cash Quantity stock orders.