A trailing stop limit order allows investors to set a "trailing amount" or "trailing ratio" so that the system continually calculates the stop price as the market fluctuates. When the stop price is hit, a buy/sell limit order will be submitted at the last calculated limit price. A trailing stop limit order guarantees a specific execution price but does not guarantee execution.
Clients need to follow the "buy high and sell low" rule when placing a railing stop limit order. The trailing amount or ratio should be greater than 0, and the specified spread needs to be no less than 0.
Assuming stock XYZ has a current price of 10, you submit a buy trailing stop limit order with a 50% trailing ratio and 1 spread. So, the order's initial stop price will be 15 (10+10*50%). When the market price falls, so does the stop price; when the market price rises, the stop price remains unchanged. A buy limit order set at 16 (15+1) will be submitted as soon as the stop price is hit.
Before the buy order fills, if XYZ's market price falls to as low as 8, the stop price will be adjusted to 12 (8+8*50%). When XYZ's market price rises to 12, a buy limit order set at 13 (12+1) will be submitted automatically to the clearing broker.
Assuming stock XYZ has a current price of 20, you submit a sell trailing stop limit order with a 5 trailing amount and 1 spread. So, the order's initial stop price will be 15 (20-5). When the market price rises, so does the stop price; when the market price falls, the stop price remains unchanged. A sell limit order set at 14 (15-1) will be submitted as soon as the stop price is hit.
Before the sell order fills, if XYZ's market price rises to as high as 30, the stop price will be adjusted to 25 (30-5). When XYZ's market price falls to 25 or lower, a sell limit order set at 24 (25-1) will be submitted automatically to the clearing broker.
Clients can place trailing stop limit orders at any time via the app.
Clients can set a trailing stop limit order's time in force. If the order is not fully filled upon expiration, the unfilled portion will be cancelled automatically by the system.
If the order fails to be executed due to risk management or other reasons, the order status will become "failed" and the system will not continue to place the order.
If the trigger condition is met during the preset trading session, the trailing stop limit order will be triggered, and the system will automatically submit a preset to the clearing broker.
The order will not be triggered if the trigger condition is met outside the preset trading session.
If the trailing amount is set:
Initial stop price = initial market price + trailing amount
Adjusted stop price = the best price of a stock before triggering a limit order + trailing amount
If the trailing ratio is set:
Initial stop price = initial market price * (1 + trailing ratio)
Adjusted stop price = the best price of a stock before triggering a limit order * (1 + trailing ratio)
Buy trailing stop limit order price = initial/adjusted stop price + specified spread
If the trailing amount is set:
Initial stop price = initial market price - trailing amount
Adjusted stop price = the best price of a stock before triggering a limit order - trailing amount
If the trailing ratio is set:
Initial stop price = initial market price * (1 - trailing ratio)
Adjusted stop price = the best price of a stock before triggering a limit order * (1 - trailing ratio)
Sell trailing stop limit order price = initial/adjusted stop price - specified spread
After a trailing stop limit order is triggered, it is not guaranteed to be submitted successfully. It may be rejected due to reasons such as insufficient buying power or positions.
After a trailing stop limit order is triggered, the system will place a limit order automatically. However, the order is not guaranteed to be filled. If it is not filled upon expiration, it will be cancelled automatically by the system.
After a trailing stop limit order is triggered, the condition cannot be triggered again, regardless of whether the order is filled or remains unfilled. You will need to place a new order.
After a trailing stop limit order is triggered, the system will place a limit order. For your convenience, the order details will be displayed in the original trailing stop limit order.
After a trailing stop limit order is triggered, the system will not submit it unless there is enough buying power or positions in your account. Margin may be used for the transaction.
Trailing stop limit orders can only be used to close positions. Suppose you hold a long position in a stock and want to place a sell order for the stock. If the order quantity is greater than the position quantity when the order is triggered, the order will not be executed.
Trailing stop limit orders will only be triggered during the preset trading session.
Our advanced orders are simulated by FUTU HK based on basic orders and are irrelevant to the exchanges' advanced orders. Please refer to the actual order page for more details.
DisclaimerFUTU HK offers advanced orders as an easy online trading option for its customers. Although we strive to ensure a stable service, we cannot promise it will be perfect. We are not liable for any financial losses or damages if an advanced order fails because of issues like network problems, server errors, or external factors.