A sell trailing stop order sets the stop price at a fixed amount below the market price with an attached “trailing” amount. As the market price rises, the stop price rises by the trail amount, but if the stock price falls, the stop loss price doesn’t change, and a market order is submitted when the stop price is hit. Please note that with a Trailing Stop order, your order may sell for a lower price if the price of the security opens below your fixed amount or goes through the price. “Buy” trailing stop orders are the mirror image of sell trailing stop orders, and are most appropriate for use in falling markets.
ToledoTrade may simulate tailing stop orders on exchanges.