A stop loss on Schwab is a sell order that becomes a market order when the stock reaches your stop price. On Schwab.com, you can set one through the All-In-One Trade Ticket by creating a sell order, choosing Stop, entering the stop price, selecting the order duration, and submitting the order for review.

Set a Stop Loss on Schwab.com

  1. Log in to Schwab.com.
  2. Hover over Trade in the main navigation.
  3. Select All-In-One Trade Ticket.
  4. Enter the stock symbol.
  5. Choose Sell.
  6. Enter the number of shares you want to protect.
  7. Select Stop as the order type.
  8. Enter a stop price below the current market price for a long position.
  9. Select the order duration:
    • Day-Only: The order expires at the end of the trading day.
    • Good-Until-Cancelled: The order remains active until it executes or you cancel it.
  10. Review the order details and submit the order.

The ticket includes fields for the symbol, action, quantity, order type, stop price, and timing. Check each field before submitting the order.

Example

Suppose you own 100 shares trading at $50 and want to sell if the price falls to $45:

  • Action: Sell
  • Quantity: 100 shares
  • Order type: Stop
  • Stop price: $45
  • Timing: Day-Only or Good-Until-Cancelled

If the stock reaches $45, Schwab sends a market order to sell the shares. The $45 price is the trigger, not a guaranteed sale price. A $5 difference across 100 shares equals a planned $500 loss before gaps, slippage, or other trading costs.

Set a Stop Loss in thinkorswim Desktop

You can also create a stop order from your positions list in Schwab's thinkorswim desktop platform:

  1. Open Monitor.
  2. Select Activity and Positions.
  3. Find the stock in your positions list.
  4. Right-click the position.
  5. Select Create closing order.
  6. Choose with STOP.
  7. Edit the quantity and stop price.
  8. Change the time-in-force setting to GTC if you want the order to remain active beyond the current trading day.
  9. Select Confirm and Send.
  10. Review the order and click Send.

thinkorswim can populate the sell-stop order with the quantity you own. You can change the number of shares, stop price, and duration before submitting it.

Which Stop-Loss Order Should You Use?

Order type What happens after the trigger Main advantage Main risk
Stop Becomes a market order More likely to exit the position The fill may be below the stop price
Stop-limit Becomes a limit order Gives you more control over the sale price The order may not execute
Trailing stop The stop moves higher as the stock rises Can protect gains without manual adjustments A price swing can trigger the order

For investors who want to exit a falling position, a standard stop order is usually the simpler choice. A stop-limit order gives you price control, but the stock may fall below your limit before the order fills.

Stop vs. Stop-Limit

A standard stop order does not guarantee a sale at the stop price. Once triggered, it becomes a market order and executes at the next available market price. The fill can be lower than the stop price if the stock gaps down, moves quickly, or resumes trading after a halt.

A stop-limit order adds a limit price. For example:

  • Stop price: $45
  • Limit price: $44.50

When the stock reaches $45, the order becomes a limit order. It will generally sell only at $44.50 or higher. If the stock drops below $44.50 before the order fills, you may still hold the position.

The trade-off is straightforward: a stop order gives the order a better chance of filling, while a stop-limit order gives you more control over the minimum sale price.

Set a Trailing Stop on Schwab

On thinkorswim desktop, open the position and select Create closing order > with STOP. In the order ticket, change STOP to TRAILSTOP, then enter a dollar or percentage offset. Choose GTC if you want the order to remain active beyond the current trading day. Review the order and send it.

For example, a 10% trailing stop on a stock trading at $100 would initially sit near $90. If the stock rises, the stop can move higher. If the stock falls, the stop does not move down with it.

Where Should You Place the Stop Price?

Your stop price should reflect the amount of risk you are willing to accept and the price level that would invalidate your trade. A stop placed too close to the current market price may be triggered by an ordinary daily move.

Before submitting the order, check that:

  • You selected Sell, not Buy.
  • The quantity matches the shares you want to protect.
  • The stop price is below the current market price for a long position.
  • You selected the correct account.
  • You chose Day-Only or GTC intentionally.
  • You understand that the execution price is not guaranteed.

For a short position, the direction is reversed. A buy-stop order is generally placed above the current market price to help close the short position if the stock rises.