Trailing stop buy order example. Narrator: A trailing stop order is a conditional order that uses a trailing amount, rather than a specific price like a normal stop order, to determine when to submit a market order. ) We enter the trade at the high of the day, which is $6. Investors use trailing stop orders to protect gains. You can set the trailing amount in either points or percentages, and the order then follows or "trails" a stock's price as it moves up. Traders may enhance the efficacy of a stop-loss by pairing it with a trailing stop. In our trailing stop order example, we place a trailing stop limit order on Stock X. (We could also have put a trailing stop market order on it. A trailing stop is a stop order that tracks the price of an investment vehicle as it moves in one direction, but not in the opposite direction. You can enter a trailing stop order where the stop-loss price isn't fixed at a single, absolute. With a buy trailing stop order, the stop price follows, or trails, the lowest price of a stock by a trail that you set. 50. Here we explain trailing stop orders, consider why, when, and how A trailing stop order executes when the price of a security moves a percentage or dollar amount in a specified direction. You can enter a trailing stop order where the stop-loss price isn't fixed at a single, absolute A trailing stop is a stop order that tracks the price of an investment vehicle as it moves in one direction, but not in the opposite direction. If the stock rises above its lowest price by the trail or more, it triggers a buy market order and is executed at the best price currently available. A trailing stop order is a variation on a standard stop order that can help stock traders who want to potentially follow the trend while managing their exit strategy. fdbpajccixkvogeuaalmgpkcepjpddlcpqloxfpxeytsmwnvgabwpuqkxwsvg