A trailing stop order is set with either a trailing ratio or trailing amount below the current market price of a security. The stop loss level moves up as the price rises. A stop order protects profits, or limits losses of a position while still profiting when the price moves favorably.
Sell-side: A sell market order is submitted when the stop price is hit.
Buy-side: A buy market order is submitted when the stop price is hit.
You can only place a trailing stop order to close positions, and buying or selling to open new positions is not allowed.
Example
Sell-side: You purchase 100 XYZ shares at $100 per share. You put in a trailing stop ratio of 5%. If the shares drop 5% below the market price, the system will automatically sell the shares.
Notes:
Moomoo MY executes trailing stop orders with the following default triggers:
● Sell-side trailing stop orders become market orders when the last traded price is less than or equal to the stop trigger price (Calculated as the highest Market Price after placing the order - Trailing Amount).
● If you set a trailing ratio instead of a trailing amount, you can calculate trailing amount = the highest Market Price after placing the order * Trailing Ratio
● Buy-side trailing stop orders become market orders when the last traded price is greater than or equal to the stop trigger price (Calculated as the lowest Market Price after placing the order + Trailing Amount).
● If you set a trailing ratio instead of a trailing amount, you can calculate Trailing Amount = the lowest Market Price after placing the order * Trailing Ratio.
