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Learn more about Trailing Stop Orders
You invest to make money. When you buy a stock, your objective is
to sell it at some point down the road for a profit. Planning your exit strategy
(the price at which you would be comfortable selling your shares) is a critical
component of a more disciplined approach to investing.
Trailing Stop
Orders follow, or “trail”, a stock’s price as
it rises. Your Trailing Stop Order’s trigger sell price, or Stop Price, is re-calculated upwards
each time a new Closing High is reached. If the stock’s price begins
to fall and reaches your calculated Stop Price, your order will be triggered
as a Market Order and your stock will be sold for the best available price.
Note for Stop Orders with Stop Limit restrictions: Once your order is triggered, there is a
risk that it may not get filled if the price drops quickly below your Stop Limit price. The
order, once triggered is only good till the close of that business day. To ensure continuous
protection in your account, you should periodically review your Stop Orders and for those
stock that you want to continue to protect, re-establish Stop Orders that have been triggered
but not filled.
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