On: January 29, 2019 In: Most Common, Trading Platforms, ZacksTrader

Placing a Trailing Stop Order in Handy Trader

This tutorial will demonstrate how to place a trailing stop order in Handy Trader

To open an order ticket, you will want to click on the More Menu button and then Order Ticket. From there you can type in the symbol under the search area. In this example, we will enter Facebook, symbol FB.

Once you type in the symbol and click search, you will then want to select the appropriate product and exchange you want to trade on. If you are approved to trade other products or in other countries, you may see other products and exchanges under the drop-down menu. Please make sure you select the appropriate product any exchange. In this example, we will select Facebook on the Nasdaq and select Stock (Smart).

You will notice the bid and ask price as well as detailed pricing information. You will want to tap the red sell button.  You can then adjust the number of shares. In this example, we will enter 100 shares. Under time in force, we will select Good till Cancel. Good till cancel orders will generally be cancelled automatically under the following conditions:

If a corporate action on a security results in a stock split exchange for shares or distribution of shares.

If the company issues a dividend where the rate exceeds 3% of the prior day’s closing price.

If you do not log into your Zacks Trade account for 90 days.

At the end of the calendar quarter following the current quarter. For example, an order placed during the second quarter of 2018 will be cancelled at the end of the third quarter of 2018. If the last day is a non-trading day, the cancellation will occur at the close of the final trading day of that quarter. For example, if the last day of the quarter is Sunday, the orders will be cancelled on the preceding Friday.

Orders that are modified will be assigned a new “Auto Expire” date consistent with the end of the calendar quarter following the current quarter.

A trailing stop order will trail with price increases but stay at the same stop amount if the price of the stock is decreasing. The STP field can be used to determine at what price the stop order will activate. We will keep it at the current price. For this example, we will place the Trail Amount at 5.00. We can then select the Trailing Type and keep it as amount. You can specify or percentage or point amount. Since Facebook is at 180.86, a $5.00 trail would be at $170.86. If the price of the stock hits that price or goes through that point, then our order will become a market order to sell; however, if the price of stock continually increases, say up to $250.00, then our new trail would be at $245.00. Our order would not sell until the Price of Facebook goes down to $245.00 or below. At that point, the order would become a market order.

Please note that a trailing stop order becomes a market order and if it is triggered it would result in an immediate execution; however, your price is not necessarily guaranteed. If the market opens well below your trailing stop price on the next day then your stock will be sold at the market for that lower price.

You can preview your order by tapping the preview button. You can then review your order and if you have a margin account, you can see the margin impact the order will have as far as margin requirements go.  When you are ready to submit your order, you can slide the Submit Buy button. You can then select whether you would like to create a trade alert.  Your order will show up in the Orders & Trades button. If your order hasn’t filled, you can update the order by tapping the open order and then tapping the modify order button. You can then modify your trailing amounts and slide again to place the modification.

Thank you very much for being a Zacks Trade client. We hope you enjoyed this tutorial and found it helpful.