Trailing Stop Limit Orders | Interactive Brokers LLC (2024)

FAQs

Does Interactive Brokers have trailing stop-loss? ›

Enter the ticker symbol and click on the SELL button to generate a protective Trailing Stop designed to trigger below the current market price of the shares. Note the red background for the Order Entry pane associated with sell orders.

The order has two basic components: the stop price and the limit price. When a trade has occurred at or through the stop price, the order becomes executable and enters the market as a limit order, which is an order to buy or sell at a specified price or better.

For example, if the last traded price is $15, you set the trail to $1 and the STP to $13 and the limit to $12.50, 50 cents below the stop price, the stock then rises to $17 your new STP price will be $16, and the order will be triggered if the stock price falls to $16 with a limit price of $15.50.

In a trailing stop limit order, you specify a stop price and either a limit price or a limit offset. In this example, we are going to set the limit offset; the limit price is then calculated as Stop Price – Limit Offset. You enter a stop price of 61.70 and a limit offset of 0.10. You submit the order.

The Fibonacci Trailing Stop indicator creates a Trailing Stop, based on Fibonacci levels which are retrieved from the latest swing high & low . This provides a Trailing Stop-line . 🔶 USAGE The Fibonacci Trailing Stop can indicate the current trend direction.

However, stop-limit orders have some disadvantages as well. One among them is the possibility of missed opportunities. The order might not be executed, and the investor would lose out on possible gains if the stock price rose quickly over the price limit.

While they provide risk management benefits, there is a possibility that a stop-limit order may not be executed if the market price does not reach the specified limit. Balancing the desire for a competitive limit price with the need to protect investments is essential.

The primary benefit of a trailing-stop order, versus a regular stop order, is that it doesn't have to be canceled and re-entered as the price of the stock increases.

For example, if the current price per share is $60, the trader can set a stop price at $55 and a limit order at $53. The order is activated when the price falls to $55, but not below $53. Below $53, the order will not be fulfilled.

What is the difference between a limit and a stop-limit? ›

Remember that the key difference between a limit order and a stop order is that the limit order will only be filled at the specified limit price or better; whereas, once a stop order triggers at the specified price, it will be filled at the prevailing price in the market--which means that it could be executed at a ...

Use a stop order when you are more concerned with getting out of the trade and are not as concerned about the price. A stop-limit order typically ensures that you get the price you set, but it doesn't guarantee that your trade will go through.

John wants to buy 1 BTC at the best possible price. The current BTC rate is $34,360, so John places a Trailing Buy order at $33,500 and sets the price deviation to 1%. So when the $33,500 price level is reached, the Trailing feature will be turned on, and it will follow the price at a 1% deviation.

With a buy trailing stop order, the stop price follows, or trails, the lowest price of a stock by a trail that you set. If the stock rises above its lowest price by the trail or more, it triggers a buy market order and is executed at the best price currently available.

Narrator: To enter a Sell Stop Limit Order, you must enter a Stop price below the current security price and a Limit price less than or equal to the Stop price, ideally the lowest price you're willing to accept. $85 is entered as Stop price and $80 is set as Limit price.

A Stop order is not guaranteed a specific execution price and may execute significantly away from its stop price. A Sell Stop order is always placed below the current market price and is typically used to limit a loss or protect a profit on a long stock position.

A few cryptocurrency exchanges offer trailing stop-loss buy orders, including Kraken, Binance, and Bitfinex. A trailing stop-loss order is a type of order that allows the user to set a stop-loss price that moves in line with the market.

Select "Trailing Stop" from the menu that appears. Enter the trailing amount for your stop in dollars or as a percentage. This is the minimum amount that the stock price must move in your favor before the stop will trigger. Confirm your trailing stop by tapping "Place Order."