Trailing-Stop Orders

A Trailing-Stop Order is an advanced type of stop-market order that dynamically adjusts with market movements. It’s designed to lock in profits and limit losses without needing manual updates.

 How Does It Work?

• You set a Trail Amount (a fixed price difference).
  
  

• If the market moves in your favor, the stop price adjusts and trails the market.
  
  

• If the market moves against you, the stop price remains unchanged.
  
  

• When the Mark Price hits the stop price, a market order is triggered.
  
  

 Example

You're long at $500 and set a trailing stop with a $20 trail amount:

• Your initial stop price = $480.
  
  

• If the price rises to $550, the stop trails up to $530.
  
  

• If the price then falls to $530, a sell market order is triggered.
  
  

This way, you secure gains while limiting downside risk.

 Why Use Trailing-Stop Orders?

• Automates profit booking
  
  

• Limits losses with minimal effort
  
  

• Adapts to market movement in real-time
  
  

• Perfect for traders who don’t want to constantly monitor the market