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Watch a video on how to create a trailing stop order!

Trailing Stop

A trailing stop sell order sets the initial stop price at a fixed amount below the market price as defined by the Trailing Amount. As the market price rises, the sell stop price rises one-to-one with the market but always at the interval set initially by the trailing amount. If the stock price falls, the stop price remains the same. When the stop price is hit, a market order is submitted. Reverse this for a buy trailing stop order. This strategy may allow an investor to limit the maximum possible loss without limiting possible gain.


To create a trailing stop order

  1. Click in the Ask Price to initiate a BUY order, or the Bid Price to initiate a SELL order.
  2. Click in the Type field and select TRAIL from the dropdown list of order types.
  3. Enter a value in the Trailing Amt field. This amount is used to calculate the initial Stop Price, and the amount by which you want the limit price to continue to trail the stop price. To change the absolute value to a percent of the best bid/ask, click in the field to initiate a dropdown arrow, and then choose Amt or %.
  1. To transmit the order, click the "T" in the Status field.

For a more detailed description, visit the Order Types information page.

Important Disclosures