If I set a limit order as a take profit at this point, then the price runs against it in the direction of the trade and I may not be filled or not completely filled.
However, prices can only rise or fall if the contracts run empty at the corresponding price levels and the next price level is reached.
If it were possible to place a limit order when the price reaches the penultimate price (for example, a tick lower), and after the limit order is in the market, follows behind the price in the direction of the ttrade, then the price could not move back again unless my order is filled. With the trailing stop style, I may even benefit from better prices.
Smart Limit Take Profit:
- the take profit becomes the trigger. If the price is reached, the limit order is set as a take profit at the previous price. There is a general possibility to determine how much earlier the limit order (gap to price) should be set.
- If my order is not filled, the limit order will be trailed in trailing stop style. I can specify the interval at which this should happen (Distance to price)
- as a safeguard, if exactly my price level is exceeded when the order move up, the order is closed as a market order in exactly this case.
- brokers sometimes limit how often an open order can be changed free of charge, there are also options to specify the maximum number of times it can be trailed.
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