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What is the difference between a trailing stop limit and a trailing stop?

Reese McDermott ∙

Lvl 9

∙ 2mo ago

Updated: 2/16/2025

A trailing stop limit is a type of order that combines a trailing stop with a limit order, allowing investors to set a limit on the price at which the order will be triggered. A trailing stop, on the other hand, is a type of order that adjusts the stop price as the market price moves in a favorable direction, helping to lock in profits.

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What is the difference between a stop order and a stop limit order on the thinkorswim platform?

A stop order becomes a market order when the stock reaches a certain price, while a stop limit order becomes a limit order when the stock hits a specified price.

What is the difference between a stop loss and a stop limit order in trading?

A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.

What is the process for setting up a trailing stop on OptionsHouse?

To set up a trailing stop on OptionsHouse, first log in to your account and select the option you want to set the stop for. Then, choose the trailing stop order type and enter the parameters such as the trailing amount and the trigger price. Finally, review and submit the order to activate the trailing stop.

What is the difference between a limit order and a stop order in trading?

A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.

What is the difference between a stop loss and a stop limit order on Fidelity, and how can they help me manage risk in my investments?

A stop loss order on Fidelity is triggered when a stock reaches a certain price, at which point it is sold at the best available price. A stop limit order, on the other hand, is triggered at a specific price but will only sell at a set limit price or better. Both orders can help manage risk by automatically selling a stock if it drops to a certain level, preventing further losses.

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Related Questions

What are the differences between a trailing stop limit and a trailing stop loss, and how do they impact the management of investment positions?

A trailing stop limit is a type of order that combines a trailing stop with a limit order. It allows investors to set a limit on the maximum loss they are willing to incur while also trailing the price of an asset. On the other hand, a trailing stop loss is a type of order that automatically adjusts the stop price based on the movement of the asset's price. The main difference between the two is that a trailing stop limit sets a limit on the maximum loss, while a trailing stop loss does not have a limit. Trailing stop limits can help investors manage their risk by ensuring they do not incur more losses than they are comfortable with. However, they may also result in missed opportunities if the price moves quickly. Trailing stop losses, on the other hand, can help investors lock in profits and limit losses without setting a specific limit. Overall, both trailing stop limit and trailing stop loss orders can impact the management of investment positions by helping investors protect their gains and limit their losses. It is important for investors to carefully consider their risk tolerance and investment goals when deciding which type of order to use.

What is the difference between a stop order and a stop limit order on the thinkorswim platform?

A stop order becomes a market order when the stock reaches a certain price, while a stop limit order becomes a limit order when the stock hits a specified price.

What is the difference between a stop loss and a stop limit order in trading?

A stop loss order is a type of order that automatically sells a stock when it reaches a certain price to limit losses. A stop limit order is similar, but it only sells the stock at a specific price or better after reaching the stop price.

What is the process for setting up a trailing stop on OptionsHouse?

To set up a trailing stop on OptionsHouse, first log in to your account and select the option you want to set the stop for. Then, choose the trailing stop order type and enter the parameters such as the trailing amount and the trigger price. Finally, review and submit the order to activate the trailing stop.

What is the difference between a stop and a stop-limit order?

The stop limit order combines the characteristics of a stop order and a limit order. A basic stop order will buy/sell your security at the market price once your stop has been reached or passed. A stop limit order will buy/sell the security at a specified price once the stop has been reached or passed. If you use a stop limit, and your limit is too high/low your order may not get filled which will negate the purpose of putting the stop on in the first place. I tend to stick with stop orders if I am trying to protect a loss on a security.

What is the difference between a limit order and a stop order in trading?

A limit order is a request to buy or sell a stock at a specific price or better, while a stop order is a request to buy or sell a stock once it reaches a certain price.

What is the difference between a stop loss and a stop limit order on Fidelity, and how can they help me manage risk in my investments?

A stop loss order on Fidelity is triggered when a stock reaches a certain price, at which point it is sold at the best available price. A stop limit order, on the other hand, is triggered at a specific price but will only sell at a set limit price or better. Both orders can help manage risk by automatically selling a stock if it drops to a certain level, preventing further losses.

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An electronic stopwatch gives a higher accuracy than a mechanical stop watch.

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It means to stop and do not continue

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