Trailing stop orders keep track of stock prices, so you don’t have to. Options. It’s usually best to choose an order type based on your investment goals and objectives. There is always the potential of losing money when you invest in securities, or other financial products. Today, we’re adding stop limit orders for options to Robinhood, a frequently requested feature among options investors. With a trailing stop order, the trailing stop price follows, or “trails,” the best price of the stock by a trail that you specify. If MEOW stays below $8, a market order isn’t triggered and no shares are purchased. All investments involve risk and loss of capital. Sign up with your email address to receive news and updates. All rights reserved. Stocks Order Routing and Execution Quality. Today, we’re adding trailing stop orders for stocks to our existing suite of order types, including limit orders, stop limit orders, and stop orders. Then, MEOW is sold at the best price currently available. Investors often use stop limit orders in an attempt to limit a loss or … If the stock’s price moves in a favorable direction, the trailing stop price will move with the stock. If the stock falls below its highest price by the trail or more, your sell trailing stop order becomes a sell market order and the stock will be sold at the best price currently available. A stop limit order combines the features of a stop order and a limit order.When the stock hits a stop price that you set, it triggers a limit order. If the stock falls to your stop price, your sell stop order becomes a sell market order. If MEOW stays between $110 and $115.50, the stop price will stay at $115.50. Explanatory brochure available upon request or at www.sipc.org. If MEOW falls to $100, the stop price will update to $105, 5% above than the new lowest price. Investors should consider their investment objectives and risks carefully before investing. FCA Authorizes Robinhood to Operate in the U.K. Financial Industry Regulatory Authority (FINRA), https://www.theocc.com/about/publications/character-risks.jsp. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. Robinhood is making millions off your trailing stop orders (data n stuff) Robinhood made $90m in Q1 2020 off non-marketable limit orders. A trailing stop order lets you track the best price of a stock before triggering a market order. ETF trading will also generate tax consequences. If MEOW stays between $100 and $95, the stop price will stay at $95. If MEOW falls to the stop price ($95) or lower, it triggers a sell market order. If MEOW stays between $110 and $115.50, the stop price will stay at $115.50. These examples are shown for illustrative purposes only. Investors often place stop loss orders to help minimize potential losses, in case the stock moves in the wrong direction. If the stock falls below its highest price by the amount you choose, a sell market order is placed. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. MEOW is currently trading at $5 per share. In an attempt to help minimize potential costs, you set your trail to 5%. Then, MEOW is purchased at the best price currently available. The 3-minute newsletter with fresh takes on the financial news you need to start your day. Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices or Web. A stop order is an order to buy or sell a stock once the price of the stock reaches a specific price, known as the stop price.