trailing stop-limit order

An order placed with a broker to buy or sell a security that is entered with stop and limit parameters that create moving or “trailing” activation and limit prices. A trailing stop-limit order allows you to enter two prices: an activation (or stop) price as well as a limit price. As a stock’s price moves, the activation price for the order moves. The limit order price also moves, based on the limit offset. A limit order to buy or sell a security is triggered once the market price exceeds the specified dollar trailing amount. This allows potentially profitable trades to run and may also help protect against a sharp decline in a stock.