A Questrade trailing stop purchase order

 A Questrade trailing stop purchase order allows you to automatically buy a security when its price rises to a specified level above the current market price, and it can be used to limit risk in a short position. This order type is available on the Questrade Edge platforms. 

Here's a more detailed explanation:

How it works:

• Trailing Stop:

  A trailing stop order is a type of stop order that automatically adjusts its trigger price based on the market price movement.
• Purchase Order:

  In a trailing stop purchase order, the "trail" is set above the current market price. As the price of the security increases, the stop price also increases by the specified "trail" amount (either a dollar amount or a percentage).
• Triggering the Order:

  If the market price of the security drops and hits the "trailing stop" price, it triggers a market order to buy the security. 

Key aspects of Questrade's implementation:

• Advanced Order Type:

  Trailing stop orders, including trailing stop-limit orders, are considered advanced order types and are primarily available on the Questrade Edge Web and Edge Desktop platforms. 
• Bracket Orders:

  Trailing stop orders are often used in conjunction with bracket orders, which allow you to set both a stop-loss and a profit target for a trade. 
• Order Duration:

  Like other stop orders, trailing stop orders are only valid during regular market hours (9:30 AM to 4 PM ET). 
• Synthetic Orders:

  Stop orders, including trailing stops, are considered "synthetic" orders because they are not directly placed on the market exchange but rather exist on Questrade's servers and are triggered based on market data. 
• Synthetic Order Triggering:

  Questrade has a setting that prevents stop orders from being triggered by a single data point. It requires three consecutive price prints (or filled orders) at the stop price before the order is executed. This setting can be adjusted in the user preferences of the Edge Desktop platform. 
• Canadian Exchanges:

  Questrade cannot place stop orders on Canadian exchanges. For Canadian securities, you may need to use a stop-limit order instead.