Get Mystery Box with random crypto!

What distinguishes Trailing Stop Market orders from Trailing S | Goodcrypto Announcment [old]

What distinguishes Trailing Stop Market orders from Trailing Stop Limit orders?

Trailing Stop orders are essentially Trailing Stop Market orders that function like Trailing Stop Limit orders until the trigger price is met. When that happens, a Trailing Stop order sends a Market order to the exchange, while a Trailing Stop Limit order places a Limit order.

Using a Trailing Stop (Market) order as a Stop Loss and/or Take Profit ensures immediate execution when triggered. However, if the price experiences a sharp movement, there's a possibility that the order might fill at a higher/lower price than the trigger price.

A Trailing Stop Limit order guarantees the order's price when it fills. However, if the price sharply moves past the limit price, there's a chance that the order won't fill and will remain in the order book after triggering.

Therefore, deciding between a Trailing Stop (Market) and Trailing Stop Limit order is a tradeoff between execution and price certainty.

#GoodGryptoTutor