Explaining the Trailing Stop Limit and a Better Alternative
ContentWhat is a trailing stopHelps you avoid market crashes Conversely, the activation price must be higher than the market price to place a sell trailing order. When trigger conditions are fulfilled, Spot Trailing Stop Order will be executed as a limit order, and Future Trailing Stop Order will be executed as a market order. Therefore, a limit price is required to place a Spot Trailing Stop Order. If the price then were to move back down to $40.15, the trailing stop would stay at $40.10. A Trailing Stop order is a modification of a Standard-Stop Market Order.Some markets may also have before-lunch and after-lunch orders.You will be filled at your specified limit price or better. Far too many people get emotional with their investments. Losing a few more percentage points…