Update on Etrade and what it means for your "Stop Orders"

The old way: Your stop order watched the "prices people were offering".

Think of it like a lemonade stand. Someone walks by and says "I'd pay 50 cents." But nobody actually bought anything at that price, they just said a number out loud. But that was enough to set off your stop order.

The new way (starting after July 29):Your stop order only goes off when someone "actually buys or sells" at that price.

A real sale has to happen. Talk isn't enough anymore.

Why that's usually better for you: With cheap stocks, people shout out weird low numbers all the time without meaning it. That could accidentally trigger your stop and sell your shares for way less than they were worth. Now that can't happen from just a shout.

The trade-off: If nobody is buying or selling at all, your stop might not go off when you want it to. It needs a real trade to wake it up.

The part you have to do: Any stop orders you already have sitting out there will be **deleted** on July 29. E*TRADE won't switch them over for you, they just disappear. So write down which stocks have stops on them before Wednesday afternoon, then put those orders back in on Thursday.