Trail orders are extremely useful, much more so than simple stop loss orders. Are there any exchanges that offer trail orders?
Using a trail order, the stop price would track the market price as long as it goes in the same direction, but not if the market price moves in the opposite direction. For example, say BTC is bid 250 USD and I place a trail stop (sell) order for 10 USD below the bid price. Here's what happens if BTC moves:
- start => my trail order will have a stop of 240
- BTC bid 260 => my trail order will have a stop of 250 now
- BTC bid 265 => stop 255
- BTC bid back to 262 => stop 255 stays in place
- BTC bid 268 => stop 258
- BTC bid 263 => stop stays 258
- BTC bid tunnels down to 255 => market SELL order triggered as soon as the bid went <=258
As of June 2013, Tradehill does not offer stop orders.