Quote Order To Buy: Trailing Stop On

Trailing Stop Orders: Mastering Order Types - Charles Schwab

Example : If a stock is at $100 and you set a $5 trailing stop, your initial stop price is $105. If the stock falls to $90, your stop price drops to $95. If the stock then rises to $95, your order triggers. Why Traders Use It trailing stop on quote order to buy

: For buy orders, the initial stop price is calculated as the current market price plus the trailing amount. Trailing Stop Orders: Mastering Order Types - Charles

A is a conditional order used to enter a long position or exit a short position by tracking a security's price as it falls . The order "trails" the current market price—specifically the inside ask price for buy orders—at a fixed distance (percentage or dollar amount). Core Mechanics Why Traders Use It : For buy orders,

: The stop price follows the market price lower but remains fixed if the price starts to rise.