Trail orders allows user to set in advance strategy for significant swings in the market. When the last price reaches maximum (or minimum) market price after trail order is submitted (1±user-defined callback rate), this triggers the order to be executed on the market.
Case 1: BTC current price is19,000 US dollars. The user believes the overall market trend remains bearish but the price will rebound later. The user would like to execute a buy order BTC when 1) the market rebounding rate exceeds the pre-set "callback rate" and 2) the market price exceeds the predefined trigger price.
The user can place a trail order as follows:
Assuming the market swings as follow:
BTC market price fell from 19,000 US dollars and reached the lowest point at 17,800 US dollars. And the price rebounds back to 17,999 US dollars. Hence the market returned 1.11% from the dip [(17999-17800)/17800] = 1.11%
Trail order would NOT be sent because:
- Market rebound rate (which is 1.11%) > user-defined callback rate (which is 1%). => condition matched
- Market Price (17999) < User-defined trigger price (18000) => condition unmatched
In summary, trail order would only be sent in the following conditions:
- Buy Order = 1)Market lowest price <=Trigger Price AND 2) Market rebound >=callback
Sell Order = 1)Market highest price >=Trigger Price AND 2) Market rebound <= callback