A Trailing Stop is a special trade order that disallows the setting of the stop-loss price as a single absolute dollar amount but allows the setting of the value as a percentage usually below the market price. The percentage value helps to track the securities price direction automatically and does not require any manual reset.
A trailing stop limit order refers to a sell trailing stop limit that moves with the market price and recalculates the stop trigger continuously at a fixed amount which is below the market price. This is usually based on a user-defined trailing amount.
On the other hand, a trailing stop loss order refers to an order that involves the buying and selling of securities when they move in an unfavorable direction. This value is automatically adjusted according to the current market price of a security.
As a result, the investor or trader is provided with greater flexibility finally profiting or limiting a loss.
Please see the video below on how to use trailing stops.
If you want to give a trailing amount and increment while placing a trade ticket you can follow this image guide below on how to fill it out correctly.
The trail increment is amount the stock needs to move to trigger the trail amount to move.
In this case if the stock moves 5 cents the stop loss will then jump 5 cents closer to the current price.
A trailing stop implemented at 3.00 will be set at 2.95 and will stay there until the price reaches 3.05. then the stop will move up to 3.00.
If you do not select the trail increment, it will update on every price increase of once cent.
If you want to learn how to make a trailing stop with hotkeys you will need to go to this guide Here.
For more information on Trailing Stops and how they're used, please visit this link here: https://www.warriortrading.com/trailing-stop-definition-day-trading-terminology/
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