Trailing stop limit order - this is an algorithmic order, which designed to a limit maximum possible loss, at the same time not limit the possible profit. After market price reaches trailing price, the following occurs: if market price moving upward profit, price of placing limit order recalculate so that the limit price is equal to the difference between the current price and trailing distance, if the price starts to move in a loss-making direction, the limit price ceases to change.
- Direction: Buy/Sell
- Trailing price
- Trailing distance
- Limit offset
- CRPT/USDT stock has a current market price of 35.0 USDT. User transmit trailing stop limit order to sell 6.0 CRPT with next parameters: 1. Trailing price = 40.0 USDT, Trailing distance = 3.0 USDT, Limit offset = 0.5 USDT.
- After you transmit take trailing stop limit order market price grow up and reached level price 40 USDT. From now on, the limit order will be triggered when the price reaches the price equal "local maximum" – "shift"» USDT.
- Later price fall to 38 USDT and then reached 41.0 USDT. Now the price of 41.0 USDT is a local maximum. After price decrease to 38.0 USDT triggered place limit order at a limit price of 37.5 USDT.