How do I simulate a trailing limit order

External question — Personal Finance Stack Exchange Author: user1731 Original post: https://money.stackexchange.com/questions/5926 License: CC BY-SA 2.5 — https://creativecommons.org/licenses/by-sa/2.5/ Adaptation: HTML converted to plain text; contact email addresses removed. How do I simulate a trailing limit order, since many brokerages don't offer this? Details: XYZ last traded at 10 and I want to buy it at 9 or lower. However, if XYZ rockets to 12, I'm now willing to pay up to 10.80. In other words, I'm willing to pay 90% of the highest value XYZ has reached since I placed my order. This is a "trailing limit". Many brokers offer "trailing stops", but few offer "trailing limits". General idea: I don't want to miss out on XYZ's increase, but I also know stocks usually don't go straight up or down. In particular, I believe that if a stock jumps up, it usually comes back down slightly due to profit-taking, and I obviously don't want to pay the peak price. Is there any way to simulate this kind of order for brokers who don't offer it? I'm actually trading FOREX, but the concept should be instrument-independent.

External answer — Personal Finance Stack Exchange Author: sdg Original post: https://money.stackexchange.com/a/6063 License: CC BY-SA 2.5 — https://creativecommons.org/licenses/by-sa/2.5/ Adaptation: HTML converted to plain text; contact email addresses removed. You cannot synthesize a Trailing Limit order from Limit and Trailing Stop orders, without using an automated system to place the orders at the correct time. To flesh out the answer: a limit order specifies a price at which to transact (unless there is better available), but allows no worse . It is a single fixed price however, in a standard limit order. A trailing stop order is most often used to allow an upside while limiting a downside. If I hold some security, and never want to lose more than 5% of its value, I can use this order type. As the security goes up in price, then back down, when it hits 5% down from the peak, the order will automatically trigger. This percentage is so I don't have to specify an exact price, but can take advantage of the full upside. In order to do what you are trying to do, which is to enter into the trade instead of trying to unwind the trade, you will need support from the broker with a Trailing Limit order, unless you are a very active trader and then effectively do it manually by staying at your screen all day (or using meta-trading tools like mentioned in the comments). Good Luck