How it works

Every trailing stop order requires one value:

Trailing amount - the distance between the current market price and your stop price. This can be set as either a fixed dollar amount (e.g., $2) or a percentage (e.g., 5%).

Dynamic stop price - the trigger price that automatically adjusts as the market moves in your favor.
For a sell order, the stop price moves up as the market price rises, maintaining the specified trailing distance. If the price falls by the trailing amount, the order is triggered.

For a buy order, the stop price moves down as the market price falls, maintaining the specified trailing distance. If the price rises by the trailing amount, the order is triggered.

Once the stop price is triggered, the order is submitted as a market order and executes at the best available market price. The final execution price may differ from the trigger price, especially during periods of high volatility or low liquidity.