#TradingTypes101 Trailing Stop Order

What it is: A trailing stop is a type of stop order that moves with the market price. It’s set at a percentage or dollar amount away from the highest price reached after the order is placed.

When to use it: Use it when you want to lock in profits as the market moves in your favor, while still protecting against downside risk.

Pros:

Automatically adjusts as the market price moves in your favor.

Cons:

It may get triggered too early in volatile conditions.

6. Fill or Kill (FOK)

What it is: A fill-or-kill order is a type of limit order that must be filled completely and immediately, or not at all.

When to use it: When you want to get in or out of a position in one go, without partial fills.

Pros:

Guarantees either a full fill or no fill at all.

Cons:

The order might not be filled at all if the market conditions don’t meet the requirements.