Moomoo AU Help Center-Trailing stop limit order
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Trailing stop limit order

A trailing stop limit order allows investors to set a 「trailing amount」 or 「trailing ratio」 so that the system continually calculates the stop price as the market fluctuates. When the stop price is hit, a buy/sell limit order will be submitted at the last calculated limit price. A trailing stop limit order guarantees a specific execution price. However, there is no guarantee that the order will be filled. 

The order follows the "buy high and sell low" rule. The trailing amount or ratio should be greater than 0, and the specified spread needs to be no less than 0.

 

1. Examples

● Buy trailing stop limit order

Assuming stock XYZ has a current price of 10, you submit a buy trailing stop-limit order with a 50% trailing ratio and 1 spread. So, the order's initial stop price will be 15 (10+10*50%). When the market price falls, so does the stop price; when the market price rises, the stop price doesn't change. A buy limit order set at 16 (15+1) will be submitted as soon as the stop price is hit.

Before the buy order fills, if XYZ's market price falls to as low as 8, the stop price will be adjusted to 12 (8+8*50%). When XYZ's market price rises to 12, a buy limit order set at 13  (12+1) will be submitted automatically to the clearing broker.

● Sell trailing stop limit order

Assuming stock XYZ has a current price of 20, you submit a sell trailing stop limit order with a 5 trailing amount and 1 spread. So, the order's initial stop price will be 15 (20-5). When the market price rises, so does the stop price; when the market price falls, the stop price doesn't change. A sell limit order set at 14 (15-1) will be submitted as soon as the stop price is hit.

Before the sell order fills, if XYZ's market price rises to as high as 30, the stop price will be adjusted to 25 (30-5). When XYZ's market price falls to 25 or lower, a sell limit order set at 24 (25-1) will be submitted automatically to the clearing broker. 

 

2. Order time 

Clients can place orders at any time via the app. 

 

3. Time-in-force     

Clients can set the order's Time-in-force. If the order is not filled in full, the unfilled portion will be cancelled automatically by the system. If the order fails to be executed due to risk management or other reasons, the order status will update to "failed," and the system will not continue to place the order.

 

4. Trigger time

If the order reaches the trigger condition during the preset trading period, the system will automatically submit the order to the clearing broker. The trailing stop limit order will not be triggered if the trigger condition is met outside the preset trading period.

 

5. Stop price

● Buy trailing stop limit order

If the trailing amount is set,

Initial stop price = initial market price + trailing amount

Adjusted stop price = the best price of a stock before triggering a limit order + trailing amount

 

Buy trailing stop-limit order price = initial/adjusted stop price + specified spread

If the trailing ratio is set,

Initial stop price = initial market price * (1 + trailing ratio)

Adjusted stop price = the best price of a stock before triggering a limit order * (1 + trailing ratio)

Buy trailing stop-limit order price = initial/adjusted stop price + specified spread

 

● Sell trailing stop limit order

If the trailing amount is set,

Initial stop price = initial market price - trailing amount

Adjusted stop price = the best price of a stock before triggering a limit order - trailing amount

 

Sell trailing stop-limit order price = initial/adjusted stop price - specified spread

If the trailing ratio is set,

Initial stop price = initial market price * (1 - trailing ratio)

Adjusted stop price = the best price of a stock before triggering a limit order * (1 - trailing ratio)

Sell trailing stop-limit order price = initial/adjusted stop price - specified spread

 

6. Notes

6.1 Placement of the conditional order does not directly freeze the customer's buying power or position. It will be frozen only when the condition of the order is triggered. Please note that triggering of conditional order does not guarantee that the order will be successfully submitted to the upstream broker or the exchange. The conditional order will be failed to submit due to insufficient buying power or positions of the account at that time.

6.2 After the trailing stop limit is triggered, the system will place a limit order automatically as soon as the stop price is hit. However, there is no guarantee that the order will be filled. If the order is not filled during the Time-in-force, it will be cancelled automatically by the system.

6.3 After the trailing stop limit order is triggered, whether it is filled or not, the trigger conditions will not be effective again. Please place a new order if necessary.

6.4 After the trailing stop limit order is triggered, the system will place a limit order. For client's convenience, the order details will be displayed in the original trailing stop limit order.

6.5 Trailing stop limit orders are only accepted if they close open positions. If the order quantity is greater than the current position, the order will not be executed.

6.6 The trailing stop limit order will only be triggered during the preset trading period.

6.7 Advanced orders are simulated by Moomoo Securities Australia Ltd based on the basic orders and are irrelevant to Exchanges' advanced orders. Please refer to the actual order page for more details.

Disclaimer

Advanced orders are an order type developed by Moomoo AU for clients' convenience. Meanwhile, Moomoo AU tries to guarantee the execution of such orders. However, please be aware that the execution might be interrupted by poor network connections, server errors, etc. Moomoo AU shall not be responsible or liable for any loss incurred.