The “Quiet Return” Trick: How to Avoid Fees When Bracketing Orders
Do you use bracket orders to minimize risk and maximize profits when trading in the stock market? If so, you may have encountered the dilemma of being charged fees for modifying or canceling your bracket orders. These fees can quickly add up, especially for frequent traders. Fortunately, there is a little-known trick that can help you avoid these extra fees. It’s called the “quiet return” trick, and it’s a game-changer for active traders. In this article, we’ll explain what the “quiet return” trick is and how you can use it to your advantage to save money on fees when bracketing orders.
What is the “Quiet Return” Trick?
The “quiet return” trick is a simple but clever workaround that allows you to avoid fees when bracketing orders. It involves canceling the bracket order before the entry order is filled, but without generating a “cancel” signal to your broker. Essentially, you are cancelling the order quietly, without alerting your broker.
Why Does This Work?
When you place a bracket order, your broker charges you fees for each modification or cancellation of that order. This is because the broker has to make changes to their systems to reflect your modifications, which takes time and resources. However, by using the “quiet return” trick, you are not generating a cancel signal to your broker, which means they are not incurring any additional costs. As a result, you avoid being charged extra fees.
How to Use the “Quiet Return” Trick
Step 1: Place Your Bracket Order
The first step is to place your bracket order as you usually would. This includes specifying your entry price, target price, and stop-loss price.
Step 2: Cancel Your Bracket Order
Once your bracket order is placed, watch the market closely. As soon as your entry price is hit, immediately cancel the bracket order. This step is crucial, as you need to cancel the order before it fills.
Step 3: Place a New Bracket Order
Now, place a new bracket order with the same entry, target, and stop-loss prices. However, this time, make sure to select the “sell” option instead of the “modify” option. This means you will be placing a new order instead of modifying the existing one.
Benefits of Using the “Quiet Return” Trick
Save Money on Fees
The most significant advantage of using the “quiet return” trick is that it can save you a significant amount of money on fees. These fees can add up quickly, especially if you are an active trader who frequently modifies or cancels bracket orders. By avoiding these extra fees, you can keep more money in your pocket and increase your overall profitability.
Improve Order Speed and Execution
Another benefit of the “quiet return” trick is that it can help improve the speed and execution of your orders. By avoiding multiple modifications and cancellations of the same order, you can prevent delays and ensure that your trade is executed as quickly as possible.
Lessons for Active Traders
The “quiet return” trick is just one example of how active traders can use clever strategies to save money and improve their trading experience. As a trader, it’s essential to stay updated on the latest tips and tricks to help you stay ahead of the competition and minimize costs.
Conclusion
The “quiet return” trick is a game-changer for active traders who want to avoid fees when bracketing orders. By using this simple but effective strategy, you can keep more money in your pocket and enjoy a more seamless trading experience. So, the next time you place a bracket order, remember to use the “quiet return” trick to maximize your profits and minimize your expenses.
