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

Trailing Stop Limit

A trailing stop limit order lets you create a trailing stop order that works in conjunction with a dynamically-updating limit order. When the stop order triggers, a limit order is submitted at the last calculated price (instead of a market order which would be submitted with a regular trailing stop order).

The Trailing Stop Limit order uses four components: Stop price, Trail amount, Limit price, and Limit Offset.

 

To enter a trailing stop limit SELL order

  1. Click in the Bid Price to initiate a SELL order.
  2. Click in the Type field and select TRAIL LIMIT.
  3. Display the Stop Price and Lmt Offset fields (Hold your mouse over any field title until the "+" and "x" Insert and Remove icons appear. Click the "+ " to display the list of available fields. Note that if you hover your mouse over an order field, all available order fields are displayed. If you hover over a market data field, all available market date fields are displayed. ).
  4. Enter values in the following fields:
  1. Trailing Amount (Aux Price) (Trailing Amt) - 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. Use the dropdown to choose Amt or %. The trailing percent is calculated off the current best bid/ask. Note that you can define a default Trailing Amount in the Order Defaults Default Order Offset Amounts area.
  2. Stop Price - You must enter an initial stop price. Unlike a trailing stop order, the initial stop price is not automatically calculated by TWS when you transmit the order, since the stop price is needed to calculate the limit price or limit offset. The stop price is continually recalculated when the market price rises. If the initial stop price is higher than the (market price - trail amount) it will not be modified.
  3. Limit Price OR Limit Offset - The limit order piece of the trailing stop limit is submitted once the stop price is penetrated. While the market price and stop price continue to fall, the limit price is also recalculated using the limit offset, and moves with the stop price.
    • If you enter a limit offset, the limit price is calculated using (stop price - limit offset).
    • If you enter a limit price, the limit offset is calculated using (stop price - limit price) when the order is submitted.
    • If the limit price and stop price are equivalent, they will move together with no offset.
  1. To transmit the order, click "T" Status field.

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

 

Important Disclosures