What are the risks of trading in volatile markets?
Volatile markets can present higher trading risks, especially when you are using electronic services to access information or place orders. • Consider placing limit orders instead of market orders. In certain market conditions, or with certain types of securities offerings (such as IPOs and financial stocks), price changes may be significant and rapid during regular or after-hours trading. In these cases, placing a market order could result in a transaction that exceeds your available funds, meaning that Fidelity would have the right to sell other assets in your account to cover any outstanding debt. This is a particular risk in accounts that you cannot easily add money to, such as retirement accounts. • Be aware that quotes, order executions, and execution reports could be delayed. During periods of heavy trading or volatility, quotes that are provided as “real time” may be stale – even if they appear not to be – and you may not receive every quote update. Security prices can change d
