Create a Trailing Stop Order

A trailing stop sell order sets the initial stop price at a fixed amount below the market price. As the market price rises, the stop price rises by the trailing amount, but if the stock price falls, the stop price remains the same. When the stop price is hit, a market order is submitted. Reverse this for a buy trailing stop order. This strategy may allow an investor to limit the maximum possible loss without limiting possible gain.

NOTE: We do not recommend using trailing stop orders, as there is no guarantee that your order will be filled at or near the designated stop price, which is especially dangerous in rapidly rising or falling markets. In addition, trailing stop orders will accentuate volatility in rough markets.

To enter a trailing stop order

  1. Click in the Ask Price to initiate a BUY order, or the Bid Price to initiate a SELL order.

  2. Click in the Type field and select TRAIL.

  3. Enter values in the following fields:

For a more detailed description of Trailing Stop orders and the products and exchanges on which they're supported, visit the Order Types information page.