Walk Limit® Orders

The Walk Limit® order type is a unique Schwab offering for option traders. Walk Limit orders are available for options strategies spanning one to four legs. The order type is available to clients with real-time data and can only be selected for stock and ETF options strategies.

A Walk Limit order uses client inputs to place consecutive limit orders at an adjusted order price.

A price increment is used to update the order price by the same amount each time a time increment passes. 

Currently, the Walk Limit order type is only available during regular trading hours. Walk Limit orders are good for the current trading day and cannot be made good till cancelled (GTC).

Order parts

A Walk Limit order has four key parts that tell it how to work. Each part can be customized to help obtain the best possible fill price. 

Start price

• Start price is the first limit price at which the order is entered for execution. 
• For a buy order, the start price must be greater or equal to the current bid price and less than or equal to the corresponding ask. For a sell order, the start price must be less than or equal to the current ask and greater than or equal to the corresponding bid.

End price 

• End price is the final limit price an order can execute at.
• For a buy order, the end price must be greater or equal to the current ask price and less than or equal to the start price. For a sell order, the end price must be greater than or equal to the current ask and less than the start price.
• Orders that reach the end price continue to work as limit orders at the end price until they are filled, canceled, or the trading day ends.

Price increment 

• Price increment dictates how much the limit price changes for each “walk.”
• The smallest price increment available is $0.01 or the minimum price increment accepted for the order. 

Time increment 

• Time increment dictates how long the order rests at each walk price for execution. 
• The shortest time increment is two seconds and the longest is 60 seconds.
• After the specified set amount of time passes, the order’s limit price adjusts by one price increment. Another time increment must pass before the price can adjust again. 

General rules and reminders

• All Walk Limit orders must increment at least once, start price and end price cannot have the same value or be zero.
• A maximum of ten walks is accepted per order.
• If the order does not fill during the walk, it will remain as a limit order at the end price until filled, expired at day’s end, or canceled by the client.
• Walk Limit order parameters cannot be modified (replaced) after entry.  Client can attempt to cancel the order any time during the walk, or, if not filled, as the order remains active at the end price.
• Walk Limit orders are available for equity and ETF options only.

Walk Limit in action

Assuming Walk Limit orders are enabled, you can use the popup Order Entry tool to create one:

1. Once the tool is opened, change the dropdown order type to Walk_Limit under Order. This creates a basic Walk Limit® order with default start price and end price values based on current bid and ask prices. 
2. Use the + (plus) and - (minus) buttons to adjust each default value or type in the exact value. Keep in mind that start price must be between the underlying’s initial bid and ask price. In addition, start price and end price cannot use the same value, be zero or negative. 
3. The order’s default price increment and time increment can also be adjusted this way. Price increment has a minimum value of $0.01. Time increment ranges from two to 60 seconds. 
4. The increments determine how often your Walk Limit order “walks” by canceling the current order (after a time increment) and placing a new price increment adjusted order at the same time. Once adjusted, another time increment must pass before the order “walks” again.  
5. At any point Walk Limit orders can completely or partially fill. Partially filled orders continue to increment until they finish filling, are canceled, or reach their end price. At this point they continue as a limit order until they fill, are canceled, or the trading day ends.

Walk Limit and other complex orders

Although Walk Limit orders can trigger other complex orders, they cannot be used within them. More specifically, Walk Limit orders cannot be child orders for complex orders but can be parent orders that trigger a new complex order if that new order is not a Walk Limit order. 

For example, a Walk Limit order cannot be one of the two branches of an OCO order, but a Walk Limit order finishing executing can trigger an OCO order.

The Walk Limit order type automatically changes price by canceling and replacing the order at successive price increments, from the Start Price to the End Price.   Walk Limit orders will default to start at the most recently displayed bid price and will incrementally change the price up to the ask price when buying, or default to start at the ask price and will incrementally change down to the bid price when selling.  The Price Increment, Time Increment, Start Price, and End Price are configurable, but will be limited to or rounded to valid prices.  If the Walk Limit order is not filled prior to the Stop Price, it will remain as a limit order, at the stop price, until canceled or end of day expiration.