- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Lesson 10 of 21
In this video we will walk through how to enter an order using the Trailing Stop order type. The Trailing Stop orders works with U.S equities, options, futures, FOPS, Warrants as well as Forex and certain and certain non-US products. A trailing stop order is designed to allow an investor to specify a limit on the maximum possible loss without setting a limit on the maximum possible gain.
For example, a sell trailing stop order sets the stop price at a fixed amount below the market price with an attached “trailing” amount. As the market price rises, the stop price rises by the trail amount, but if the stock price falls, the stop loss price doesn’t change, and a market order is submitted when the stop price is hit.
We will now enter a trailing stop sell order in the Mosaic Order Entry Panel.
For example, if the last traded price is $15, you set the trail to $1 and the STP to $13, the stock then rises to $17 your new STP price will be $16, and the order will be triggered if the stock price falls to $16. If, however, the stock price doesn’t improve from $15 and starts to fall, a stop will be reached at $13.
Now that the order is set, click submit and the order confirmation window will appear summarizing the order and the inputs you selected.
Click Transmit and the order will populate the Activity panel and show TRAIL in the Type data column.
You can also track the stop price by adding the “Stop Price” data column and the Trailing amount by adding the “Aux. Price” to the Activity Panel order tab by clicking on the gear icon in the top right-hand corner.
The Trailing Stop order is a great way for the investor to set a limit on loss without potentially limiting possible profit.
Additional Links:
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
The order types available through Interactive Brokers LLC's Trader Workstation are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.
Hello. Why don’t I see the trailing stop order in my buy and sell orders? Or – need guidance on where to find and run this command ?
Thanks . Yehoshua Aharoni
Hello Mr. Aharoni, thank you for reaching out. Please review the detailed study notes below this video lesson and if you would like, you can also review the order types page on our website: https://www.interactivebrokers.com/en/trading/ordertypes.php.
MR lol.
how do you set this in the Global Configuration pre-sets?
Hello, thank you for reaching out. Please describe the difficulty you are experiencing in more detail, and we will do our best to help.
For more information on the Trailing Stop Order, please review this webpage: https://www.interactivebrokers.com/en/trading/orders/trailing-stops.php
We hope this helps!
When entering trail stops for options, should the prices be set as dollars to relate to current market value or cents as related to the contract price? For example, if I buy a long call for 0.20 or $20 and I want to add a $1 trail and a .15 or $15 stop loss bracket. Should the dollar amount for the trail be entered as $1 or as .01? And should the stop loss price be entered as .15 or as $15? Thank you for the clarification.
Hello, thank you for reaching out. You can enter whole numbers for whole dollar values. We hope this helps!
Cannot see this option in the app
Hello, thank you for reaching out. Trailing Stop Orders are available in IBKR mobile. Please view instructions in this FAQ:https://www.interactivebrokers.com/faq?id=38437623
Is Trailing stop available in IBKR desktop? (Or only TWS) And, trailing stop available only %/$ or also moving averages? (Following ex. 20EMA and triggered when below) Thanks
Hello, thank you for asking. Yes, the trailing stop order is available in IBKR Desktop. The trailing amount can be determined by price or percentage at this time. We hope this helps!
Why does a trailing % require a stop price input? it should just be 20% from the current price of your position.
How do I do a trailing stop on IBKR desktop?
Hello, thank you for asking. After logging in, right click your desired security and then click “Advanced” to open the Advanced Order Ticket. Then, where it says Order Type, click the down arrow and “Trailing Stop”. We hope this helps!
Hey Guys, I am also a bit confused about TSB (trailing stop buy) on futures like YM… If you could let me know where my mistake was, would really appreciate it… So i had an open short position, i wanted to place a trailing stop buy.. i selected to buy 1 position as trail stop. I have set the Stop value to ~39460 USD and choose TRL 1 (cant change the amount in TWS, just the type if %/Amount) . When I submitted this order, it immediatly got triggered and placed the buy order., last price was approx at 39433 and order got filled at 39435.. I would have expected that my stop order would be at 39460 while the price was at 39433, meaning i would have an offset of 27 points at that moment (and NO, there was no volatility so that it would trigger my loss) Much appreciated !
Hello, thank you for contacting us. For a time-sensitive trading inquiry, please contact Client Services via phone: http://spr.ly/IBKR_ClientServicesCampus
Can I specify decimal percentage in trail stop order? Looks like only whole number is available on the mobile app
Hi Brian, thank you for asking. Yes, this is possible. In IBKR Mobile, after selecting Trailing Stop as the order type, click the trailing type. You can change it from amount to percentage. We hope this helps!
I place trail orders via TWS API. Can I get updates of the current stop price via the API after placing the order?
Hello, thank you for reaching out. Yes, the same order ID will be returned over the EWrapper.openOrder function in the auxPrice or trailingStopPrice fields of the order object returned. We hope this helps answer your question!
Are this orders valid on the pre/after market and overnight?