Lock in your profits.
A Trailing Sell uses a Trailing Percentage based upon yesterday’s High/Low/Close. For example, you may wish to sell if your stock falls by 5% or more of yesterday’s close in order to take advantage of rising prices and lock in profit as it comes off.
This Sell Trigger Price is recalculated overnight and is not a static figure. There are two types of Trailing Sell orders; Profit Target and Trailing Stop orders.
If the share price rises, the trailing Sell price will follow the share price up. It is recalculated daily and will follow the share price in an upward direction only. If the share price begins to fall the trailing percentage locks in place and stays at the same price as the previous day - it does not move down. If the share price continues to fall it will eventually hit the Trigger Price and trigger the Conditional Order. The trailing price mechanism only ever moves upwards or horizontal, it never moves down.