trailing stop

(redirected from Trailing Stop Order)

Trailing Stop

An order to sell a security when the price drops below a certain percentage of a given price. If the price rises, the trailing stop remains the same percentage below the new price. However, if the price drops, the trailing stop remains the same.

For example, suppose an investor buys a security at $10 per share and sets a trailing stop at 20% below the price. If the price drops to $8, the security is automatically sold. If the price rises to $20, the trailing stop moves to $16. However, if the security is bought at $10 and the price drops to $9.50, the trailing stop remains at $8. Likewise, if the price rises to $20 and then drops to $18, the new trailing stop remains $16. See also: Advisory account.

trailing stop

A stop order to sell (or to buy) a security in which subsequent stop orders are placed at progressively higher (or lower) levels as the stock price increases (or decreases). For example, an investor may purchase shares of Union Pacific Corporation at $60 and simultaneously place a stop order to sell the stock if it drops to $58 or below. If the stock rises to $63 without going through the $58 stop price, the investor raises the stop price to $61. Thus, the stop price trails the market price of the stock.
References in periodicals archive ?
It then went on to place a Trailing Stop order at 1.
2) A trailing stop order will not guarantee an execution at or near the activated trailing stop price.
For more on how to protect a client's portfolio, and Benjamin Graham, please see these previous Mike Patton posts: The Value of Using Trailing Stop Orders: A How-To Using ETF Trailing Stop Orders in Portfolios: Watch the Price
from the outset and provide investors with a range of intelligent order types, such as trailing stop orders.
Wells Financial Holdings Limited newly enhanced online trading platforms also include: updated options chains with timely streaming data; Good Til Cancelled (GTC) Trailing Stop Orders on mostly open equities positions to shield earnings and limit losses by instantly modifying a client's exit price as the value of the security increases; Symbol Entry Field Drop-Down Menus designed for quicker and easier access to the latest securities viewed and traded; more improved and better capabilities for traders to print breaking news and important data that could impact their individual trading strategies and trading style; and support system from Microsoft Vista Operating System.
OANDA fxTradeNOW functionality includes real-time quotes, charting in four different timeframes, and the ability to enter take profit, stop loss, or trailing stop orders.
Over the past few years, I've been buying stock ETFs on dips and backstopping them with trailing stop orders.
The site is free for Scottrade customers and makes it easy for investors to view account information, including balances, order status and positions, as well as to react to real-time market changes by enabling them to trade stocks and exchange-traded funds (ETFs) with market, limit, stop, stop limit and trailing stop orders.
Check out Working With Trailing Stop Orders to Protect a Portfolio on ThinkAdvisor.
In addition to competitive pricing and state-of-the-art security solutions, E*TRADE Canada provides customers with a broad set of tools and services to make the most of their online investing experience, including real time account balances, customizable trading platforms, direct market access, trailing stop orders, uncovered options trading, SmartAlerts and the IPO Centre online, to name a few.
E[acute accent]--Special order types including trailing stop orders on the software and web products, conditional orders, reserve or hidden orders, proactive orders, incremental pegging and bumping.