JonathanDrew,

In order to place a trailing stop using your example the first step would be to go to Trading > Stocks + ETFs. While on this page below the symbol and price column you will see the "advanced order" tab. When you click on that tab the trailing stop option will be one of the advanced orders that you can choose. After clicking on the trailing stop order the trading page will update to show the trailing stop criteria that you are looking to place. The trailing stop order would be added after you have purchased the stock. The bottom part of the trailing stop trading page will allow you to enter in 8 as the percentage to follow the security by. You will want to have the "percent" selected rather than "points". Please be aware that the top part of the trading page will allow you to enter in the sell order of the stock. This would need to be placed as a market order. If you have any further questions please let us know.

Best regards,

Stefan McVeigh
TradeKing Customer Support

Jim Smith Chicago,

A trailing stop order is an order in which the stop trigger price is specified in terms of points or a percentage above or below a security's market price. (bid, ask or last). If the security's price moves in a favorable direction after the order is placed, the stop trigger price will adjust itself automatically.

The reason why it is called a trailing stop is due to the way in which the order works. It trails the underlying security by the criteria that you have set up. For example... If you initially set a 5% trailing stop on a stock that is at $10 then the initial trigger will be $9.50. When that stock increases in value the 5% criteria would reset and adjust to a new trigger price. If the $10 stock went up to $11.00 then your new trigger would be at $10.45 rather than the original $9.50. The main difference is that a stop order would not change once it is placed while the trailing stop will adjust to follow an increase in value.

Best regards,

Stefan McVeigh
TradeKing Customer Service