ETRADE is one of the most popular online brokerage platforms for individual investors in the U.S., offering a comprehensive suite of tools through both its standard web platform and Power ETRADE. Whether you’re investing in stocks or ETFs (Exchange-Traded Funds), ETRADE offers flexible order types and intuitive interfaces to help you execute trades effectively.
This guide walks you step-by-step through the process of buying and selling stocks and ETFs on ETRADE and Power ETRADE, covering everything from finding a stock to selecting the right order type for your strategy.
Getting Started: Finding the Stock or ETF
Before placing any order, the first step is to identify the stock or ETF you want to trade. Simply type the name of the company or the asset you’re interested in, such as “Apple,” into the search bar. Once you select the correct ticker symbol (e.g., AAPL for Apple), you’ll be taken to the asset’s information page.
Here, you can view important data such as:
- Last Price – The most recent trade price.
- Bid Price – What buyers are willing to pay per share.
- Ask Price – What sellers are asking for per share.
- Volume and Open Orders – The number of shares being actively bid or offered at those prices.
This data helps you get a sense of the current market sentiment and the liquidity of the stock.
How to Buy Stocks and ETFs on ETRADE
Step 1: Initiate a Buy Order
Once you’ve selected a stock or ETF, click on the “Action” menu and choose “Buy.” You will then be prompted to enter the quantity you wish to purchase.
For example, if you want to buy 10 shares of Apple, simply type in “10.” If you’re unsure how many shares you can afford, click the “Calculate” button. If you have $1,000 in your account, E*TRADE will calculate how many whole shares that amount allows you to purchase. Since partial shares of most stocks (including Apple) are not allowed unless you’re using a fractional investing feature, the system will round it down.
Step 2: Choose an Order Type
E*TRADE offers several types of orders, each suitable for different trading strategies:
Market Order
- What it does: Buys or sells the asset at the best available current price.
- Best for: When you want the trade executed immediately.
- Downside: You may pay a slightly higher price than expected during fast market movements.
Market on Close
- Executes your trade as close to the market’s close (4:00 p.m. ET) as possible.
- You won’t know the exact price in advance.
Limit Order
- What it does: Lets you set the maximum price you’re willing to pay (for buying) or the minimum you’re willing to accept (for selling).
- Example: If Apple is trading at $145.42 but you only want to buy it at $140, set your limit price to $140.
- Duration Options:
- Good for Day (GFD) – Cancels at the end of the trading day if not executed.
- Good Till Canceled (GTC) – Stays active for up to 60 days unless canceled.
- Other Durations: Immediate or Cancel (IOC), Fill or Kill (FOK), Extended Hours, etc.
Stop Order / Stop on Quote
- Triggers a market order once a specified price is reached.
- Commonly used to prevent large losses or to capture gains.
Stop Limit Order
- Triggers a limit order when a stock hits a designated stop price. You define both the stop price and the limit price.
Trailing Stop and Trailing Stop Percentage
- Moves automatically with the stock price, locking in gains while protecting against downside risk.
- Great for managing long-term positions.
Step 3: Preview and Place the Order
After configuring your order, click “Preview Order” to double-check all the details. If everything looks right, select “Place Order.” You’ll receive a confirmation once it’s submitted.
You can also cancel or modify your order as long as it hasn’t been filled. On E*TRADE’s interface, go to the left side of the bar showing your open orders to find the edit or cancel option.
How to Sell Stocks or ETFs on E*TRADE
Step 1: Locate Your Holding
Navigate to your portfolio or holdings section. Click on the stock or ETF you wish to sell. For instance, if you previously bought 10 shares of Apple, locate that line item in your account.
Step 2: Select Sell Option
Click “Trade” and then choose “Sell.” Enter the number of shares you want to sell—let’s say 10 in this case—and then decide on your order type (Market, Limit, Stop, etc.), just like you did during the buy process.
Preview the order to make sure everything is correct, and then click “Place Order.”
Step 3: Confirm Execution and View P&L
After the order executes, you’ll see the updated Profit and Loss (P&L) in your account. If you sold at a higher price than you bought, congratulations—you’ve locked in a gain. If not, your loss will also be shown.
Using Power E*TRADE for Advanced Trading
Power E*TRADE is the platform’s more advanced trading interface, ideal for frequent traders or those looking for more data and analytics.
Quick Trade Boxes
The Quick Trade feature allows you to execute trades rapidly, without navigating through multiple menus. It’s especially useful if you’re placing multiple trades or want faster response times.
On Power E*TRADE, margin accounts are usually activated by default, meaning you may be able to trade with borrowed funds. Always be cautious with margin trading, as losses can exceed your deposit.
When using the Quick Trade box:
- Choose “Buy” or “Sell”
- Select quantity
- Choose order type (usually Market or Limit)
- Confirm and send the order
Order Management
From Power E*TRADE’s interface, you can:
- View all open and filled orders
- Cancel or modify existing trades
- Analyze performance using real-time data
Tips for Trading Stocks and ETFs on E*TRADE
- Use limit orders if you’re price-sensitive or trading volatile stocks.
- Check extended hours options if you trade pre-market or after-hours (7 AM to 8 PM ET).
- Keep track of order expiration – set alerts if you use “Good Till Canceled” orders.
- Double-check your buying power before placing trades, especially in a margin account.
- Avoid emotional decisions – setting automated stop-loss or trailing stops can help you stay disciplined.
Conclusion
Buying and selling stocks or ETFs on ETRADE and Power ETRADE is simple once you understand the platform’s interface and the different types of orders available. Whether you’re a long-term investor or an active trader, E*TRADE offers the tools to help you make informed and efficient trading decisions.
Always remember to review each order carefully, understand the risks involved—especially with more advanced order types—and keep your investing goals in focus.
