To the optionsguys (Brian), or any TK Staff:

Today was another day where I was wondering, exactly how do you place a contingent + trailing stop order? It sure would have been nice to be able to use one when the markets were tanking and then an abrupt reversal. Anyways, I tried some searching, and I found in the comments of this blog here by Brian: http://community.tradeking.com/members/optionsguy/blogs/10846-managing-neutral-trades-with-contingent-orders

 Contingent Trailing Stop orders ARE available at TradeKing. We do have Trailing stops and yes they are basically a contingent trailing stop. You will find them in the advanced order box in the middle of the page on the stock basic order entry screen.

I've played around with the trading screen for about 20 minutes now, and I still don't see how we can make a contingent trailing stop order. I know there are several members on TK Community that have expressed interest in using contingent trailling stops, and whether it is even possible, but I don't think I've seen a solid answer on how to exactly do that?

Just an example of what I actually mean:

Say I own XYZ stock at $20/share, and it's currently trading at $18. I want to sell it for at least a profit of $2 so at $22. Furthermore, I would also like to be able to let the stock "run" per-say if the stock starts taking off. So ideally I'd want to use a trailing stop- sell when the stock price has backed off a certain amount of $/% off the most recent bid/ask/last trade. The problem is the stock is currently below my cost basis as well as the price I'd like to minimally exit at. If I placed a trailing stop order right now, I could possibly get stopped out if the stock price moves up to $20, but backs off by the increment that I set in the trailling stop order, resulting in losing my position before my ideal exit. 

Solution? Add a contingent before the trailling stop, such that the trailling stop is contingent upon the stock price reaching a certain price, and then sending the trailing stop order. Example in this case would be, execute the trailling stop if XYZ reaches $22.75 (contingent part), and once XYZ hits $22.75, execute trailing stop order with increment of xx dollars or xx percent, say 0.75 cents in this case. In effect, if XYZ hits $22.75, we will have a stop loss order then right away at $22 since 0.75 down from the contingent $22.75 price = $22. 

So it seems like the only thing missing in the Trailling Stop page is an extra price to put in that "contingent" part of the order. If we can already do this, how? Other community members, if you know, care to share? If not, can we look forward to using contingent trailing stop orders anytime soon?

Thanks!

Yeah, I thought it was confusing too.  Does this functionality exist?  If so, can you give a quick tutorial?  If not, will TK add that functionality?

My understanding is that since these are both advanced order types that one can't have a contingent trailing stop.  You could just set a contingent stop limit order (using your example) for $22 with a trigger price of $22.75.  Then when you see the price has reached your trigger of $22.75 you could cancel the limit order and enter a new trailing stop.  I really don't understand the usefullness of this order type however.  You might want to just set a trailing stop at the current trading price and then manually adjust the increment if the stock price moves in your desired direction.  You could set the trailing stop increment at a large amount, say $2 increment and then adjust it to a tighter trailing stop if the stock moves up and you want to take profits sooner. 

A related question I had has to do with having a contingent order for rolling option spreads.  Does anyone know if this feature is available.  E.G., Am I able to set a contingent order to roll a credit spread to the next month if the underlying price approaches my short leg?  

Condortrader,

Yes there's no problem with doing what you said, except it requires you to be in front of the computer for the whole time pretty much. A contingent trailing stop would basically be placing a trailling stop in advance, so if you have to leave for the rest of the day, and the stock happens to jump, the contingent will be met and a trailling stop placed. But, as it is now I don't think we can place the contingency on the trailling stop, and so we'd have to physically be in front of the computer to check the price constantly and then place a trailling stop order, real-time. 

A trailing stop by definition is a contingent order. I am confused as to what you are asking in this post. I think it will take a phone call to hammer this question out. If you are saying "I want the stock to go to a price and then enter a trailing stop". So basically two advanced orders, a contingent attached to a trailing stop - that is not possible. The ability to attach to advanced orders together is not availabe at this time.

He is the link to the learning center explaining how to enter a "simple" trailing stop order.

http://content.tradeking.com/wiki/display/tkservice/Trailing+Stops

Regards,

Brian (Og)

Optionsguy,

Yeah, you answered my question with this, "So basically two advanced orders, a contingent attached to a trailing stop - that is not possible."

Is there any plans to implement this in the future? 

Thanks

"a contingent attached to a trailing stop - that is not possible"

should say: "a contingent attached to a trailing stop - that is not possible at TradeKing"

This type of order is one one favs in my "other broker", thou I have to say not too many brokers are that state of the art as "my other broker" :)

Brian,

It may help people if you didn't call them contingent trailing stops. I have responded to several posts on here regarding this issue and never seen an answer to this seemingly common question until now. I do thank you for the answer so that we all now know.

It would definitely be an asset if these types of orders were allowed at some point through Tradeking.

Too be fair, I need to complement my prior comment - there is always a trade off - "the other broker" I was reffering to is also WAY more expencive than TK (unless one makes gazzilion trades per month). I maintain my opinion that TK is one of the best moderatly priced retail brokers ( especially for people who want to be introduced to the world of options at reasonable costs with a lot of free tools)