What is an immediate trailing stop order?
A trailing stop order is very similar to a limit stop order, but the trigger price for a trailing stop order will move with your trade when the market moves in your favor, and will close the trade when the market moves against you. An instant trailing stop order allows you to place a pre-set order a specific percentage away from the market price.
When the price moves in your favor, a trailing stop order locks in your profits by keeping the trade open and continuing to take profits as long as the price moves in the preferred direction. Also, a trailing stop order does not move backwards in the opposite direction. When the price moves in the opposite direction by a specified percentage, a trailing stop order will be executed as a limit order. When a trade is not going in the preferred direction, a trailing stop order can help minimize your losses and protect your gains.
