Due to high volatility in the options market, SoFi requires you to set a limit price for all options trades.
- For Buy Limit Orders, the order will only be executed at that price or lower. This means that the price you enter for your Buy Limit Order will be the maximum you are willing to spend per share.
- For Sell Limit Orders (e.g. to close an existing position), the order will only be executed at that price or higher. This means that the price you enter for your Sell Limit Order will be the minimum you are willing to receive per share.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Options Disclosure Document. Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.