For a buy order, the reverse is true. For example, the current stock price is $10 and you want to set the trigger price at a trailing ratio of 10% above the stock price i.e. $11. When the price falls to $9, the trigger price falls to $9.90. When the price increases to $12, the stop does not change and remains at $11.
Dadacai OP : @Always Hungry
Always Hungryy Dadacai OP : thanks dude. I saw this before, but don't understand practically how it works?
Dadacai OP Always Hungryy : You’re welcome.
Always Hungryy : so boss in the example how do they calculate the spread? where does the 0.5 come from?
Dadacai OP Always Hungryy : @Always HungryThe spread is 0.5 if the lowest price you are willing to sell below the stop/trigger is 50cts below that. When the order triggers at the stop, the market price may fall a lot below the stop so trailing stop limit allows you to set the maximum difference below the stop you are willing to sell at. Do you understand what trailing ratio is?
Always Hungryy Dadacai OP : OK I understand. So in the example spread was 0.5, meaning when the pricing drops from 140 to 126, then it will trigger an order limit anywhere from 126 down to 125.50. Correct?
Dadacai OP Always Hungryy : Yes.
Always Hungryy Dadacai OP : OKOK, the perhaps the page coule be explained better by writing spread 0.50 is the price 126 down to 125.50. So the dummies like me geddit :)
Dadacai OP : @milliondollar
TuoyoNiks : Thanks bro, good men.
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