A trailing market if touched order is entered on the same side of the market as a limit order. This order will initially be set at a price level that is favorable to the current market. As the market moves away from the initial trigger price, the user defined trailing amount will adjust the trigger price to follow the market. If the initial market movement is in a favorable direction and reaches the initial trigger price, the order will be triggered and submitted as a market order for execution. If the market moves in an unfavorable direction, the order will trail the market movement and will trigger only if there is retracement by the defined trailing amount.
To place a Trailing Market If Touched order in Classic TWS:
- Use the Customize Layout followed by Order Columns feature to display the Stop Price and Aux. Price columns
- Click the Bid price to create a Sell order; click the Ask price to create a Buy order;
- Select TRAIL MIT as the order type; the name of the Stop Price field changes to Trigger Price and the Aux. Price field changes to Trailing Amount
- Enter a Trailing Amount in the Trailing Amount field
- Select the appropriate time in force
- Hit Transmit (or T) to submit the order
- The Trigger Price is automatically calculated and displayed after you submit the order.
Find out more on the Trailing Market If Touched orders page of the IBKR website.