A trailing stop 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 market order will be submitted. A stop order does not guarantee a specific execution price and may execute significantly away from its stop price.
Clients need to follow the "buy high and sell low" rule when placing a trailing stop order. The trailing amount or ratio should be greater than 0.
Assuming stock XYZ has a current price of 10, you submit a buy trailing stop order with a 50% trailing ratio. 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 remains unchanged. A buy market order 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 market order will be submitted automatically to the clearing broker and filled at the market price.
Assuming stock XYZ has a current price of 20, you submit a sell trailing stop order with a 5 trailing amount. 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 remains unchanged. A sell market order 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 the price falls to 25 or lower, a sell market order will be submitted automatically to the clearing broker and filled at the market price.
Clients can place trailing stop orders at any time via the moomoo app.
Clients can set a trailing stop order's time in force. If the order is not fully filled upon expiration, 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 become "failed" and the system will not continue to place the order.
If the trigger condition is met during the preset trading session, the trailing stop order will be triggered, the system will automatically submit a preset order to the clearing broker.
The order will not be triggered if the trigger condition is met outside the preset trading session.
● 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 market order + trailing amount
● 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 market order * (1 + trailing ratio)
● 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 market order - trailing amount
● 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 market order * (1 - trailing ratio)
1. After a trailing stop order is triggered, it is not guaranteed to be submitted successfully. It may be rejected due to reasons such as insufficient buying power or positions.
2. After a trailing stop order is triggered, the system will place a market order automatically. However, the order is not guaranteed to be filled. If it is not filled upon expiration, it will be cancelled automatically by the system.
3. After a trailing stop order is triggered, the condition cannot be triggered again, regardless of whether the order is filled or remains unfilled. You will need to place a new order.
4. After a trailing stop order is triggered, the system will place a market order. For your convenience, the order details will be displayed in the original trailing stop order.
5. After a trailing stop order is triggered, the system will not submit it unless there is enough buying power or positions in your account. Margin may be used for the transaction.
6. Trailing stop orders can only be used to close positions. Suppose you hold a long position in a stock and want to place a sell order for the stock. If the order quantity is greater than the position quantity when the order is triggered, the order will not be executed.
7. Trailing stop orders will only be triggered during regular trading hours.
8. Our advanced orders are simulated by Moomoo MY based on basic orders and are irrelevant to the exchanges' advanced orders. Please refer to the actual order page for more details.