Aha, after lots of looking I found this in the FAQ... I guess in the example above my stop price would be '.05'.
Do I have the ability to enter trailing stop orders (VTSO)?
Yes!
A “virtual trailing stop order” (VTSO), is a stop order that adjusts as the price of a security moves. It is important to note, however, that this is not a valid order at any stock exchange. Rather, it is a “virtual” stop order since a computer program monitors the stock’s price and sends a market buy/sell order to the exchange when it is activated.
To use a VTSO order to place a “sell stop,’ you would enter the following. Let’s say you own 100 shares of XYZ, currently trading at $40. In the Zecco Stock Order Entry Form, you would enter an order to sell 100 shares, Order Type VTSO, with a Stop price of $1. Nothing is entered in the Limit Price Box.
The computer program will then look for the NEXT trade in XYZ shares, and that will trigger the Stop Level. For instance, if the next trade in XYZ is $40.05, your stop will be set at $39.05, and this level will adjust higher if the stock moves up, but will never move lower than your initial Stop Level. A buy stop works in similar fashion, except that the stop is placed higher than the current trading price.
One important caveat is involved with VTSO orders. Erroneous stock price “prints” (i.e., out of sequence “sold sales” and/or “late sales”) occur occasionally on various ECN’s and stock exchanges, which can sometimes trigger VTSO orders in error.
Zecco Trading cannot take responsibility for trades executed based on an erroneous stock price “print” that triggers a VTSO order. Additionally, please note the following:
- VTSO orders are not available for "odd" lots (less than 100 shares)
- VTSO orders are not available for stocks trading at less than $5.00
- VTSO orders can only be entered during regular business hours (9.30am-5pm ET on business days).