Create a Trailing Stop Limit Order

A trailing stop limit order lets you create a trailing stop order that works in conjunction with a dynamically-updating limit order. When the stop order triggers, a limit order is submitted at the last calculated price (instead of a market order which would be submitted with a regular trailing stop order).

The Trailing Stop Limit order uses four components: Stop price, Trail amount, Limit price, and Limit Offset.

To enter a trailing stop limit SELL order

  1. Click in the Bid Price to initiate a SELL order.

  2. Click in the Type field and select TRAIL LIMIT.

  3. If not already visible, display the Stop Price and Lmt Offset fields (right-click in the column headers and select Customize Layout, then use the Order Columns tab to add fields).

  4. Enter values in the following fields:

  1. Aux Price (Trailing Amt) - This value is subtracted from the bid price to continually recalculate the stop price, if the market price rises. Use the dropdown to choose Amt or %. The trailing percent is calculated off the current best bid/ask. Note that you can define a default Trailing Amount in the Order Defaults Default Order Offset Amounts area.

  2. Stop Price - You must enter an initial stop price. Unlike a trailing stop order, the initial stop price is not automatically calculated by TWS when you transmit the order, since the stop price is needed to calculate the limit price or limit offset.  The stop price is continually recalculated when the market price rises. If the initial stop price is higher than the (market price - trail amount) it will not be modified.

  3. Limit Price OR Limit Offset - The limit order piece of the trailing stop limit is submitted once the stop price is penetrated. While the market price and stop price continue to rise, the limit price is also recalculated (with an optional offset) and moves with the stop price. If you want to specify a limit offset amount, enter it in the Lmt Offset field. when the order is submitted, this value is subtracted from the stop price to calculate the limit price. If you want to enter a limit price, when the order is submitted the limit price is subtracted from the Stop price to calculate the Limit Offset. If the limit price and stop price are equivalent, they will move together with no offset.

  1. To transmit the order, click "T" Status field.

For a more detailed description and example of Trailing Stop Limit orders, visit the Order Types information page.

Copyrights and Trademarks