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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 this strategy may have on your investing or trading 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.
This type of order can help you save time: place a buy order as your primary order and a corresponding sell limit, sell stop, or sell trailing stop at the same time. Or, if you trade options regularly, use an OTO order to leg into a buy-write or covered-call position.
- 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...
May 9, 2022 · A trailing stop loss is a type of order that enables the trader to set a maximum dollar amount or percentage drop from the high point of a running position. The order is designed to...
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.
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In this stock market order types tutorial, we discuss the trailing stop loss order type, what it is, and how to use it when you are trading or buying stocks....
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