Equity Algo Orders

How does the VWAP Equity Algo Order function?

A VWAP (Volume-Weighted Average Price) algo order attempts to achieve an average execution price close to the stock’s VWAP over a chosen time window. Instead of filling your order at once, the system slices it into smaller trades and paces them in proportion to overall market trading volume.

How does the “Max %” setting affect a VWAP order?

The “Max %” field lets you control the pace of your order. You choose a percentage between 1% and 20%, which represents the maximum share of total market volume your order can be. For example, if you set 10% and the stock trades 1,000,000 shares during your window, your order will not exceed 100,000 shares. A lower % makes the order trade more slowly, while a higher % lets it complete more quickly.

What risks are associated with using the VWAP order?

VWAP algo orders trade gradually to track average market prices, but this pacing can miss favorable price moves in fast or trending markets. Their predictable execution pattern may also be noticed by other traders, increasing the risk of front-running. In low-liquidity periods, aggressive activity can move prices unfavorably, and if actual market volume differs from expectations, execution quality may be affected.

How does the TWAP Equity Algo Order function?

A TWAP (Time-Weighted Average Price) algo order spreads your order evenly across a set time period, regardless of how much the market is trading at any moment. It executes in regular slices to achieve an average price close to the simple time average over your selected window.

What risks are associated with using the TWAP order?

Because TWAP follows a fixed trading schedule, it may ignore changing market conditions and continue executing during periods of low liquidity or high volatility, increasing slippage and impact. The rigid timing can also cause missed opportunities for better prices, and its predictable pattern may be identified by other traders, potentially leading to unfavorable fills.

How does the POV Equity Algo Order function?

A POV (Percentage of Volume) algo order executes in real time based on the stock’s actual trading activity. Instead of following a schedule, it adjusts dynamically — trading more when the market is active and less when it’s quiet.

How does the Target % Setting affect a POV order?

The Target % tells the algo how aggressively to participate in the market’s volume. For example, a 5% target means the algo will try to make your trades equal about 5% of total volume during your timeframe (up to your full order size). A higher % makes the algo more aggressive, completing your order faster, while a lower % keeps it more passive.

What risks are associated with using the POV order?

POV orders rely on real-time market volume, so execution pace and completion depend heavily on available liquidity. When trading activity slows, fills may be delayed or incomplete, while even small participation rates in thinly traded stocks can move prices unfavorably. Following bursts of high volume can also expose orders to adverse flow, and the variable timing of execution can be challenging for time-sensitive trades.

How do I place equity algo orders?

App:

1. Confirm that the stock you are trading is eligible for algo trading (Equity algo icon).
2. Navigate to Trade ➝ Buy or Sell.
3. Tap Order Type: Select Algo then the desired algo type.
4. Specify a Price Type: Limit or Market.
5. Select Start & End Time.
6. VWAP & POV Only: Specify %.
7. Tap Confirm to submit your order.

What order types are available?

Ony limit and market orders can be used for equity algo orders.

When can I place equity algo orders?

Algo orders can be placed at 7:00 AM ET to be queued up for market hours. Algo orders are only executable during the regular market session (9:30 AM – 4:00 PM ET). Any unfilled portions expire at the close.

Do equity algo orders have size or value minimums?

Yes. Equity algo orders require a minimum of 1,000 shares and $5,000 notional value.

Why didn’t my entire order fill?

Equity algo orders are not guaranteed to complete the full requested quantity. These orders follow pacing rules tied to market volume, time distribution, or participation settings. As a result, your order may only be partially executed if:

• The market did not trade enough volume to support your full size.
• Your limit price was never reached (for limit algo orders).
• The selected timeframe ended before the algo could complete.

Any unfilled shares will expire when the time window you selected ends, whether that’s earlier in the day or at the close of the regular market session.