TrailingStop at Thinkorswim

Discussion in 'Order Execution' started by mrwoody, Sep 17, 2009.

  1. mrwoody


    Hi *.
    I just started play with my virtual account at Thinkorswim and I don't understand how TrailingStop works.

    Is the number that I see there the percentage for which I will sell after it gets down to that, or is just the value of the stock?
    An example would be very helpful, but I was not able to make it work, and I lost a lot of (virtual) money because a stock went down by 5% today.

    Also, from the site:
    "thinkorswim does not recommend trailing stop orders, as there is no guarantee that your order will be filled at or near the designated stop price, which is especially dangerous in rapidly rising or falling markets. In addition, trailing stop orders will accentuate volatility in rough markets."

    So what shall I use instead?

  2. mrwoody


    I had the same problem today:

    WBT SELL -25,000 BBI @1.50 TRSTPLMT MARK-.01 (STP 1.37) MARK GTC

    This was supposed to sell BBI with stop at 1.37, right?

    But the price went all the way down to 1.35 and the order was not executed. What am I doing wrong?

  3. It may be that you placed a trailing stop order, which automatically turns into a market order when the stop price is reached. The market order can then be executed at a price lower than the current price.

    If they offer it, try a trailing stop limit order, which does not turn into a market order and will give you a firm set asking price for your order.

    Here's some more info: Scroll about halfway down to the section on Conditional Orders.