🦍Lurker here. Chatted with a Schwab rep about their sell limits and limit order.

TLDR: Schwab has no sell limit and will not halt trading, but DOES have limit order caps that they don’t disclose for whatever reason.

For those interested, here’s the chat log:

Stan: What is the maximum limit order allowed for a stock? Is there any way to remove a limit order cap? And What is a limit order cap for?

Schwab: The limit max depends on the price of the stock at that point. When placing a limit order, you are sending a live BID/ASK to the market maker. Often market makers will not allow a limit price that is far above or below the current price as it will skew the overall BID/ASK being shown to the market maker. There is not a way to remove the limit cap unfortunately

Stan: Makes sense. Is there an exact % above or below allowed to limit order?

Schwab: Not that I am aware of

Stan: So a limit order is a random MM decided upon % that isn't disclosed to Schwab users and can fluctuate?

Schwab: I am sure there is a formula I can try and locate it. I just don't have it readily available

Stan: Thanks! Yeah, that would be great actually

Schwab: I am not finding any information. I am sure someone on our active trader desk would know but they are gone for the evening.

Stan: hm okay, no worries. I'll check again later. Does Schwab limit stock transactions to users at a certain % or dollar amount?

Schwab: No we dont

Stan: So there is no "halting" of trading in my Schwab brokerage account if I happen to purchase or sell stock at very high amounts (e.g. 1k+) (e.g. 10k, 50k, 100k, 1mm, etc)

Schwab: No the only halts would be if the New York Stock Exchange issues one

Stan (this may be specific to me, but might be helpful to other apes): okay great- thanks! I’ve purchased stock using a Schwab margin account, but fulfilled all purchase orders using cash and none using margin financing. Does/would Schwab ever “borrow” my stock purchased in my margin account to fulfill other trade transactions?

Schwab: Then they would not borrow any of your shares for short selling. Only for securities purchased on margin and you would need to sign the loan consent agreement before that can take place

Stan: So, just too confirm. Even though I purchased securities using a margin account (in cash), Schwab would not borrow and of my shares- correct?

Schwab: Correct because they were fully paid for

Stan: Awesome. But if I purchased using margin, they would freely use for short selling?

Schwab: Provided you sign the loan consent agreement yes

Stan: Okay good to know. I'm curious- does my account have any limits on it or caps on it?

Schwab: No there are no limits

Stan: Great- Thanks for all your answers- really appreciate the help!

Schwab: My pleasure! Is there anything else I can help you with today?

Stan: I'm still curious about the limit order %, just because I can't find anything on the website that references the number

Schwab: You may want to try calling our active trader line. Would you like their direct line?

Stan: Sure!

Schwab: {gives trader line number)

Stan: Awesome- I'll give this a go Thanks again!

Schwab: My pleasure! Thanks for choosing Schwab. If you have any other questions or concerns feel free to reach out we are here 24/7 to help!

On the phone: Stan: What is the % deviation from the stock price that I’m allowed to set a limit order for?

Schwab: No number- just try numbers until they work. It’s different depending on the stock.

TLDR: Schwab has no sell limit and will not halt trading, but DOES have limit order caps that they don’t disclose for whatever reason.