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A trailing stop order lets you track the price of a stock before triggering a market order if the stock reaches the trailing stop price. Investors often use trailing stop orders to help limit their maximum possible loss or as part of an exit strategy.
A trailing stop loss order adjusts the stop price at a fixed percent or number of points below or above the market price of a stock. Learn how to use a trailing stop loss order and the effect they have on your investing strategy.
Sep 5, 2019 · Today, we’re adding trailing stop orders for stocks to our existing suite of order types, including limit orders, stop limit orders, and stop orders. Trailing stop orders keep track of stock prices, so you don’t have to.
Types of Trailing Stop Orders: Trailing Stop Loss: Once triggered, the order will become a market order. Trailing Stop Limit: Once triggered, the order will become a limit order. Trailing Stop Order trigger values: You may elect to trigger a Trailing Stop order based on the following security market activities:
- A market order instructs Fidelity to buy or sell securities for your account at the next available price. It remains in effect only for the day, an...
- When you place a limit order to buy, the stock is eligible to be purchased at or below your limit price, but never above it. You may place limit or...
- Stop orders are generally used to protect a profit or to prevent further loss if the price of a security moves against you. They can also be used t...
- You place a time limitation on a stock trade order by selecting one of the following time-in-force types: Day A time-in-force limitation on the ex...
- The commission for a good 'til canceled order is assessed at the time your order is executed. If your order receives multiple executions on a singl...
- Although different exchange rules may exist for adjusting orders when a security pays a dividend, the general rule is that good 'til canceled (GTC)...
- Volatile markets can present higher trading risks, especially when you are using electronic services to access information or place orders. Conside...
- Trailing Stop Orders adjust automatically when market conditions move in your favor, and can help protect profits while providing downside protecti...
- A conditional order allows you to set order triggers for stocks and options based on the price movement of stocks, indices, or options contracts. T...
Trailing stop orders are stop orders that adjust in price with favorable market movement on the security. They follow the same trading principles and mechanics commonly associated with stop orders. The benefits are ease of use, potential profit protection and risk management.
Jun 14, 2021 · Stop-limit orders become limit orders once they reach the stop’s execution point. But they’ll only execute if the stock price matches the limit. The trailing stop you set will follow a stock in a profit-making direction.
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What is a trailing stop loss?
May 9, 2022 · 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.
