IB Trailing Stop Question

Discussion in 'Retail Brokers' started by NomadicRiley, Mar 12, 2006.

  1. I've been reading the IB documentation, but am still confused about what the stop price in the trailling stop does.

    For example, say I have a stock currently at $10 and if the stock goes to $12, I'd like a trailing stop of .50.

    If I enter a trailing stop of .50 with a stop price of $12, does this accomplish what I'm trying to do. If not is there another way to do it?
  2. Example

    You have purchased 100 shares of XYZ for $50.00/share and want to lock in a profit and limit your loss. You set the trailing stop 2 points below the current market price. The price of XYZ starts rising and hits $65.00 over the course of the month. The trailing stop price has adjusted accordingly and is 2 points below $65.00 (or $63.00). Suddenly the price begins to drop. Once it hits $63.00 the trailing stop order is activated, and a market order to sell 100 shares of XYZ is submitted.

  3. Please note for a trailing stop you are designating a trail amount NOT a stop price.

    We recently released 'trailing stop limits' which use the same trigger logic but submits a limit order.
  4. Is there anyway I can enter an order that will wait until a stock reaches a certain price and then enter a trailing stop? I tried to do this with a conditional order, but it wouldn't let me have a trailing stop with a conditional order.

    To use your example, if I purchased a stock at $60. When the stock gets to $65, I'd like to enter a trailing stop of $1.

    Thank you for your assistance.