Trailing Stop Orders: Mastering Order Types - Charles Schwab
Example : If a stock is at $100 and you set a $5 trailing stop, your initial stop price is $105. If the stock falls to $90, your stop price drops to $95. If the stock then rises to $95, your order triggers. Why Traders Use It
: For buy orders, the initial stop price is calculated as the current market price plus the trailing amount.
: If the security's price reverses and rises enough to reach or exceed your set trailing stop price, a market order is triggered.