Let's say that there's a stock I am investing in. Market price is currently at $300. The market is rallying and I would like to sell if it reaches $315. Great, I will set a limit order at $315. But here's the thing, if this stock just keeps moving on up, and I sell around ~$315, if the stock rallies to ~$330 and I missed out on a sweet $15 per share and the opportunity to set a higher floor price at which to sell.

What I would want to do is once, and only once I pass a threshold ($315), enable a stop limit order automatically to sell as soon as possible if and only if it falls back down below $315. Essentially, I don't want to bail out of a rally if I don't have to.

Does such an order type exist? Asides from needing the money or other tax implications, why wouldn't you want to do this instead of a classic limit order?


Stock exchanges only offer basic order types not complex algorithmic orders. However, some brokers do.

Here's a link to an extensive list of algos offered by Interactive Brokers. I don't use many algos so I don't know if they offer exactly what you want. Take a look at "Trailing Limit if Touched" and see if it works for you.


Does such an order type exist?

Not on exchanges. That said ,trading platforms and / or brokers do have this functionality. it is not an order type an exchange WOULD support. Makes no sense - can with no loss in functionality be done one level higher.

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