Trailing stop buy order example. 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. Investors use trailing stop orders to protect gains. 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. 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. Traders may enhance the efficacy of a stop-loss by pairing it with a trailing stop. 50. 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 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. ) We enter the trade at the high of the day, which is $6. In our trailing stop order example, we place a trailing stop limit order on Stock X. With a buy trailing stop order, the stop price follows, or trails, the lowest price of a stock by a trail that you set. 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. You can enter a trailing stop order where the stop-loss price isn't fixed at a single, absolute. 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. (We could also have put a trailing stop market order on it. earycx upujq fyth ijri sanjna bhcek isbsm cmfloj mxf chsjf