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A trailing stop that becomes a limit order when triggered, instead of a market order.
Why It Matters
It combines two ideas: the trigger trails the price upward like a trailing stop, and when it fires it becomes a limit order like a stop-limit. So you get an auto-adjusting trigger plus price protection on the exit. The same catch applies as any stop-limit: in a fast drop the price can blow through your limit and leave the order unfilled. It's for traders who want a hands-off trailing trigger but refuse to sell below a set price.
Key Points
- Trigger trails up like a trailing stop
- Fills as a limit order once triggered
- Price-protected, but may not fill in a fast drop
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Trailing Stop Orders
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Related Terms
Common Questions
A trailing stop that becomes a limit order when triggered, instead of a market order. It combines two ideas: the trigger trails the price upward like a trailing stop, and when it fires it becomes a limit order like a stop-limit. So you get an auto-adjusting trigger plus price protection on the exit.
It combines two ideas: the trigger trails the price upward like a trailing stop, and when it fires it becomes a limit order like a stop-limit. So you get an auto-adjusting trigger plus price protection on the exit. The same catch applies as any stop-limit: in a fast drop the price can blow through your limit and leave the order unfilled. It's for traders who want a hands-off trailing trigger but refuse to sell below a set price.
Trigger trails up like a trailing stop
Fills as a limit order once triggered
Price-protected, but may not fill in a fast drop