What is a Trailing Stop Limit Order?
A Trailing Stop Limit Order is a modification of a typical Stop Loss Limit Order that will trigger at a defined percentage or absolute amount away from the asset's current reference price (Index, Last, or Mark).
In a Trailing Stop Limit Order, a Limit Order will be placed when the price has reverted from the most favorable peak price by the specified offset amount.
To use this order type, three parameters must be met:
- •Trailing offset: This is the offset from the reference price (Index, Last, or Mark*) at which a market order will be placed. This can be entered as either a set percentage or a nominal quote currency offset (e.g. USD).
- •Limit offset: This is the offset from the trailing price at which a Limit Order will be placed. Limit offset can be negative or positive, this can be entered as either a set percentage or a nominal quote currency offset (e.g. USD).
- •Order Quantity: This is the total quantity of your order, it defines the amount you are trying to buy or sell.
Trailing Stop orders are available as primary or conditional close orders via the Kraken Pro order form.