Trailing stop

This order is actually a variation of the standard stop order which could help traders to manage their exit strategy while following the current market trend. This is a conditional order where the trader uses a trailing amount rather than specifying the stop price to determine the right time to submit a market order.

Understanding trailing stop limit orders

A trailing stop limit order allows traders to set a trailing amount or percentage. Whenever you set a trailing stop limit order, the system continually recalculates the stop price as there is a market fluctuation. When the stop price is a hit, a buy/sell limit order will be submitted. The trailing stop limit order guarantees a specific execution price.