Trailing Stop Limit order is an order that requires setting a trailing amount or trailing ratio and entering “Specified Spread”. (the specified spread refers to the number of points to follow after triggering) The Trailing Stop Limit order will automatically calculate the trigger price based on the changes in the market price and the trailing amount or trailing ratio. The trigger price type can be set as the current market price, bid price, or ask price.. When the market price reaches the trigger price specified by the user, a limit order (limit order price +/- specified spread ) will be automatically submitted. A Trailing Stop Limit order guarantees a specific execution price but does not guarantee execution.
Features:
• Your purchasing power or position will not be verified when placing an order. Verification will be conducted when the conditions are met.
• If the number of pending trigger orders is equal to or greater than 50 orders, , no further triggering conditions orders can be placed.
•For cash accounts: The amount of pending trigger orders must be less than twice the account's net assets.
•For margin accounts: The amount of pending trigger orders must be less than five times the account's net assets.
• Orders are limited to US stocks and US stock options.
• When placing a trailing stop limit order, the trailing amount or trailing ratio must be greater than 0, and the specified spread must also be at least 0.
• The calculated limit order will be rounded down to the nearest integer value based on the step size.
1. Example:
1.1 Buying Direction
If you submit a Trailing Stop Limit order to buy with a trailing ratio of 5% and a specified spread is 1 (you can determine the specified spread based on your position) when the market price is USD20, the initial trigger price of the order will be set to USD21. When the market price falls, the trigger price will also fall; when the market price rises, the stop loss trigger price will remain unchanged. When the stock price rises to or exceeds the trigger price, a limit order will be triggered for purchasing
If the lowest price of the product falls to USD10 after the order is placed and before it is triggered, the trigger price will be updated to USD10.5 (10+10x5%). The order will automatically be submitted to the market with a limit price of USD10.5 when the current market price of the product reaches USD11.5 or above, the execution is not guaranteed. .
1.2 Selling Direction
Assume you have submitted a Trailing Stop Limit order to sell with a trailing amount of USD 2 and a specified spread of 1 when the market price is USD 30, the initial stop loss trigger price of the order will be USD 28. When the market price rises, the stop loss trigger price will also rise; when the market price falls, the stop loss trigger price will remain unchanged. When the stock price falls to or below the stop loss trigger price, a limit order to sell will be triggered.
If the price of the product in the order has risen to a maximum of USD 40 after placement but before triggering, and there is no higher price afterwards, then the trigger price will be updated to USD 38 (USD 40 – USD 2). If at this point, the stock market price declines to USD 38 or below, an automatic limit order will be submitted to the market at a price of USD 37, with no guarantee of execution.
2. Order Time, Trigger Time
Orders can be placed at any time on the client’s side.
3. Order Duration
Clients can choose whether their orders are valid only on the day of the order or valid until canceled (GTC). If an order is not fully executed within the specified period, the system will automatically cancel the order.
If an order fails during the execution process due to risk control measures, company actions, or other reasons, the order status will be updated to cancelled, and the system will no longer continue to submit the order.
4. Trigger Time
The trading session can be set as "Include Extended Hours" or "regular session only." Orders will be triggered based on the different time settings. After the conditions are triggered, the system will automatically submit the default order to the market.
5. Calculation Logic of Trigger Price
● Buying
When the trailing amount is set,
Initial trigger price = Initial price + trailing amount
Trigger price = Lowest market price that before triggering and after placing the order + trailing amount
When the trailing ratio is set,
Initial trigger price = Initial price * (1 + trailing ratio)
Trigger price = Lowest market price before triggering after placing the order * (1 + trailing ratio)
Price of the trailing stop limit order to buy = Trigger price + specified spread
● Selling
When the trailing amount is set,
Initial trigger price = Initial price - trailing amount
Trigger price = Highest market price that before triggering and after placing the order - trailing amount
When the trailing ratio is set,
Initial trigger price = Initial price * (1 - trailing ratio)
Trigger price = Highest market price that before triggering and after placing the order * (1 - trailing ratio)
Price of the trailing stop limit order to sell = Trigger price - specified spread
6. Explanation and Notes
6.1 Placing a conditional order does not immediately freeze purchasing power or positions. Validation will only occur when the order meets the trigger conditions. Please note that triggering a conditional order does not guarantee successful submission to the upstream broker or exchange and It is possible for the failure of order placing due to insufficient purchasing power or positions in the account.
6.2 After the order is triggered, there is no guarantee of execution. A trailing stop limit order is simply a system that automatically submits a limit order for the investor after the trigger price is reached. The processing logic for the submitted order after triggering is the same as a regular order. If there is no match, the order will be automatically canceled after the time limit expires.
6.3 After the order is triggered, whether the corresponding order is executed or not, the order trigger conditions will not be activated again. If needed, please place a new order.
6.4 After the order is triggered, the system will submit a limit order. For the convenience of client’s order management, the order type remains unchanged and still be displayed as a trailing stop-limit order.
6.5 After the order is triggered, it will be determined whether the order can be submitted to the upstream broker or exchange based on the account's maximum purchasing power, which may involve financing. Placing a trigger order does not freeze the purchasing power. However, if the order amount in the cash account exceeds twice the net asset value of the account, the order cannot be placed. Similarly, if the order amount in the margin account exceeds five times the net asset value of the account, the order cannot be placed.
6.6 If the order is for position closure and the order quantity is higher than the position at the time of triggering, the order will not be executed.
6.7 Trailing stop limit orders will only be triggered within the allowed trading session.
6.8 Supported products for trailing stop limit orders:
6.8.1 US stocks: Supports buying to open a position, buying to close a position, short selling to open a position, and selling to close a position.
6.8.2 US stock options: Supports buying to open positions and selling to close positions.
6.9 If a client has 50 or more pending trigger orders in his account, additional orders with trigger conditions cannot be placed.
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