Trailing Stop on Power Etrade App

[bigmarket]

Trailing Stop on Power Etrade App

Trailing stops are active for securities but not on options contracts? Can anyone confirm this?

[joker]

No trailing stops on options using the Power E*trade app. That stock trading app stinks

[lloyd80]

A trailing stop order is a type of order that is placed with a broker to buy or sell a security when it reaches a certain price point. The trailing stop order is designed to automatically adjust the stop price as the market price moves in favor of the trade. In other words, the trailing stop order "trails" the market price and adjusts the stop price accordingly.

To place a trailing stop order in Power E*TRADE, you can follow these steps:

Log in to your Power E*TRADE account and navigate to the "Trading" tab.
Select the security you want to trade and click on "Trade."

Choose "Sell" or "Buy" depending on the type of order you want to place.
Select "Trailing Stop" as the order type.

Enter the number of shares you want to trade and set the trailing amount. The trailing amount is the dollar amount or percentage distance between the market price and the stop price.

Set the stop limit price, which is the minimum price at which you are willing to sell the security if the market price falls.

Review your order and submit it.

Once you have submitted your trailing stop order, the stop price will adjust automatically as the market price moves in your favor. If the market price falls, the stop price will remain at the same level and trigger a market order to sell the security if it reaches that level. Note that trailing stop orders are not guaranteed to execute at the exact price specified, as market conditions can change rapidly, and there may be slippage between the stop price and the executed price.

As for options trailing, I have to look deeper, I was actually thinking about calling the help line.

[bigmarket]

If you understand trailing stops you can use them to your advantage, if not, you are wasting your time.

Trailing stops can be a useful tool for managing risk in trading, but like any other trading strategy, it's important to understand how they work and how to use them effectively.

When you place a trailing stop order, you set a percentage or dollar amount below the current market price, and as the price of the security increases, the trailing stop follows it, maintaining the set percentage or dollar amount below the current market price.

The advantage of a trailing stop is that it allows traders to lock in profits while also giving the position room to run, potentially capturing more gains. Additionally, trailing stops can be useful in limiting losses and managing risk, as the stop will trigger if the price moves against the trader's position, helping to limit potential losses.

However, it's important to note that trailing stops can also result in premature exits if the price moves against the position and triggers the stop too soon. Additionally, in highly volatile or fast-moving markets, trailing stops may not always be executed at the desired price, leading to slippage.

Overall, trailing stops can be a useful tool in managing risk and maximizing profits, but it's important to understand how they work and how to use them effectively. Traders should also consider their own risk tolerance, market conditions, and individual trading strategies before using trailing stops in their trading.

I would say trailing stops should only be used by advance and more experienced trader, too much room for error for newbies.