A Comprehensive Guide On How To Cancel A Gap Order

Placing a gap order on the stock market can be useful for some trading strategies. However, there may come a time when you want to cancel an open gap order before it triggers. Knowing how to properly cancel a gap order is important to maintain control of your trading activity.

If you’re short on time, here’s a quick answer to your question: To cancel a gap order on most trading platforms, you simply need to locate the order in your list of working orders and select the option to cancel it.

Some key steps are logging into your trading account, navigating to the working orders screen, finding the gap order, and clicking cancel.

In this comprehensive guide, we’ll cover everything you need to know about canceling gap orders. We’ll start with an overview of what gap orders are and when you may want to use them. Then we’ll provide step-by-step instructions for canceling gap orders on major online trading platforms.

We’ll also discuss what happens after you cancel a gap order and some best practices around managing these useful but complex orders.

What Are Gap Orders and When Are They Used?

Gap orders are a type of trading order that is used to take advantage of price gaps in the market. A price gap occurs when there is a significant difference between the closing price of an asset and the opening price of the next trading session.

Gap orders are typically used by traders who believe that the price of an asset will continue to move in the direction of the gap, providing them with an opportunity to profit.

Defining Gap Orders

A gap order is a type of limit order that is placed to buy or sell an asset at a specific price. It is called a “gap” order because it is intended to take advantage of price gaps in the market. Gap orders can be placed either above or below the current market price, depending on whether the trader wants to go long or short on the asset.

When placing a gap order, traders typically set a specific price at which they want the order to be executed. If the price of the asset reaches this level, the order is triggered and executed. This allows traders to enter or exit a position at a predetermined price, regardless of the current market conditions.

Common Strategies Using Gap Orders

Traders use gap orders for a variety of strategies. One common strategy is the “gap fill” strategy, where traders believe that the price of an asset will eventually fill the gap and return to its previous price level.

In this case, traders would place a gap order to buy or sell the asset at a price that would allow them to profit from the price movement.

Another strategy is the “gap continuation” strategy, where traders believe that the price of an asset will continue to move in the direction of the gap. In this case, traders would place a gap order to buy or sell the asset at a price that would allow them to profit from the ongoing price movement.

Why You Might Want to Cancel a Gap Order

There are several reasons why you might want to cancel a gap order. One reason is if the price of the asset has moved in the opposite direction of the gap, making it unlikely that the order will be filled. In this case, canceling the order can help you avoid potential losses.

Another reason is if the market conditions have changed since you placed the order, making it no longer favorable to execute the trade. For example, if there is a sudden news event that causes the price of the asset to change dramatically, you might want to cancel the gap order to avoid being caught on the wrong side of the market.

It’s important to note that canceling a gap order is not always possible, especially if the order has already been triggered and executed. In such cases, you may need to consider other strategies to manage your position and minimize potential losses.

For more information on gap orders and how to cancel them, you can visit Investopedia’s article on gap orders.

Step-by-Step Guide to Canceling a Gap Order

On Fidelity

Cancelling a Gap order on Fidelity is a straightforward process. Follow these steps:

1. Login to your Fidelity account and navigate to the “Accounts” tab.
2. Select the account that contains the Gap order you wish to cancel.
3. Click on the “Order Status” option to view your open orders.
4. Locate the Gap order you want to cancel and click on the “Cancel” button next to it.
5. Confirm the cancellation by clicking “Yes” when prompted.

By following these steps, you can easily cancel a Gap order on Fidelity and manage your investments effectively.

On TD Ameritrade

If you have placed a Gap order on TD Ameritrade and wish to cancel it, the process is quite simple:

1. Log in to your TD Ameritrade account and go to the “Trade” tab.
2. Under the “Orders & Positions” section, click on “Order Status” to view your open orders.
3. Find the Gap order you want to cancel and click on the “Cancel” button.
4. Confirm the cancellation by clicking “Yes” when prompted.

With these easy steps, you can cancel a Gap order on TD Ameritrade hassle-free.

On E*TRADE

To cancel a Gap order on E*TRADE, follow the steps below:

1. Login to your E*TRADE account and click on the “Trading” tab.
2. Under the “Order Status” section, locate the Gap order you wish to cancel.
3. Click on the “Cancel” button next to the order.
4. Confirm the cancellation by clicking “Yes” when prompted.

By following these steps, you can easily cancel a Gap order on E*TRADE and make any necessary adjustments to your portfolio.

On Charles Schwab

Cancelling a Gap order on Charles Schwab is a straightforward process. Follow these steps:

1. Log in to your Charles Schwab account and go to the “Trade” tab.
2. Under the “Orders” section, click on “Order Status & History” to view your open orders.
3. Locate the Gap order you want to cancel and click on the “Cancel” button next to it.
4. Confirm the cancellation by clicking “Yes” when prompted.

By following these steps, you can easily cancel a Gap order on Charles Schwab and manage your investments effectively.

On Interactive Brokers

If you have placed a Gap order on Interactive Brokers and need to cancel it, follow these simple steps:

1. Login to your Interactive Brokers account and navigate to the “Trade” tab.
2. Under the “Order Status” section, find the Gap order you wish to cancel.
3. Click on the “Cancel” button next to the order.
4. Confirm the cancellation by clicking “Yes” when prompted.

With these easy steps, you can cancel a Gap order on Interactive Brokers hassle-free.

What Happens After You Cancel a Gap Order

Cancelling a Gap order can be a straightforward process, but it’s important to understand what happens next. Here’s a comprehensive guide on what to expect after cancelling a Gap order.

Refund Process

Once you cancel a Gap order, the refund process will be initiated. The time it takes for you to receive your refund will depend on the payment method you used. Generally, refunds are processed within a few business days, but it may take longer for the funds to appear in your account.

If you paid with a credit or debit card, the refund will usually be credited back to the original card used for the purchase. However, it’s always a good idea to check with your bank or credit card company for specific details regarding their refund policies.

Confirmation Email

After cancelling a Gap order, you will typically receive a confirmation email. This email serves as a record of your cancellation and may include important details such as the refund amount, estimated time of arrival for the refund, and any other relevant information.

It’s essential to keep this email for your records and reference it if you have any questions or issues regarding your refund. If you don’t receive a confirmation email within a reasonable timeframe, it’s recommended to reach out to Gap’s customer service for assistance.

Availability of the Items

When you cancel a Gap order, the availability of the items you purchased will be updated. This means that the items will no longer be reserved for you, and they may become available for other customers to purchase.

If you decide you still want the items you cancelled, you may need to place a new order or contact Gap’s customer service to inquire about their availability. Keep in mind that popular items may sell out quickly, so it’s best to act promptly if you wish to re-purchase them.

Tracking Your Refund

If you’re eager to track the progress of your refund, you can often do so by visiting the Gap website or contacting their customer service. Many retailers provide tools or systems that allow customers to track their refunds online, giving you peace of mind and visibility into the refund process.

It’s important to note that the refund process may vary depending on the specific circumstances, such as the reason for cancellation or any promotional offers applied to the order. If you have any concerns or questions about the refund process, it’s always best to reach out to Gap directly for clarification.

Overall, cancelling a Gap order can be a straightforward process, and understanding what happens next can help you navigate the refund process with ease. Keep track of your confirmation email, stay informed about the refund timeline, and don’t hesitate to reach out to Gap’s customer service if you have any concerns.

Happy shopping!

Best Practices for Managing Gap Orders

GAP orders can be a useful tool for investors looking to take advantage of price gaps in the market. However, managing these orders effectively is crucial to ensure that you can execute them successfully. Here are some best practices to consider when managing your GAP orders:

Use Conditional Orders

One way to manage GAP orders effectively is by using conditional orders. Conditional orders allow you to set specific conditions that must be met before your GAP order is executed. For example, you can set a condition that the price must reach a certain level before the order is triggered.

This can help you avoid executing the order at unfavorable prices and increase the chances of a successful trade.

Set Expiration Dates

Another important practice when managing GAP orders is to set expiration dates. By setting an expiration date, you can control the timeframe in which your order remains active. This is particularly useful when trading volatile assets, as price gaps can close quickly.

Setting an expiration date ensures that your order is automatically canceled if it is not executed within the specified timeframe.

Monitor Your Working Orders

Monitoring your working orders is crucial to managing GAP orders effectively. Regularly checking the status of your orders allows you to make necessary adjustments or cancel them if the market conditions change. This can help you avoid unexpected losses or missed opportunities.

Implementing a systematic approach to monitor your working orders can greatly improve your trading performance.

Remember, managing GAP orders requires active involvement and constant monitoring. By following these best practices, you can increase your chances of executing successful GAP trades and minimize potential risks.

Conclusion

Gap orders can be useful for pursuing certain trading strategies around gaps in stock prices. However, like any complex order, they require close monitoring and management. By following the step-by-step instructions provided, you can easily cancel gap orders when needed on major trading platforms.

Just be sure to consider best practices like using conditional orders and expiration dates to maintain control.

The next time you need to cancel a gap order, you can refer to this guide for the key steps. With the right approach, you can utilize gap orders as part of your overall trading plan while minimizing risks through active order management.

Careful use of orders like these can help lead to success in today’s dynamic markets.