How to place a trailing stop buy order on Charles Schwab?

 To place a trailing stop buy order on Charles Schwab, you'll first need to access the trading platform, then navigate to the trade ticket for the desired stock. Choose the "Buy" action and select "Trailing Stop" as the order type. You'll then specify the trailing amount (either in points or percentage) that the price needs to drop before the order is triggered. When the stock price moves higher, the trailing stop price will also move up, always remaining at the specified distance from the current price. If the stock price drops by the specified trailing amount, the order will be triggered and converted to a market order to buy the stock. 

Here's a more detailed breakdown:

1. Access the Trade Ticket: Log in to your Charles Schwab account and navigate to the trading platform. Locate the stock you want to buy and open the order ticket. 
2. Set the Action: Choose "Buy" as the action you want to perform. 
3. Select Trailing Stop Order Type: From the list of order types, select "Trailing Stop". 
4. Specify the Trailing Amount: You'll need to define the trailing amount. This can be done in two ways:
   • Percentage: You can set the trailing amount as a percentage below the current market price. For example, if the stock is trading at $100 and you set a 5% trailing stop, the stop price will be $95. If the stock price increases, the stop price will also increase, always staying 5% below the current market price. 
   • Points: You can also set the trailing amount as a specific dollar amount below the current market price. For instance, if the stock is trading at $100 and you set a $2 trailing stop, the stop price will be $98. As the stock price rises, the stop price will also increase, maintaining the $2 difference. 
5. Considerations:
   • Trailing Stop vs. Stop Limit: A trailing stop order differs from a stop-limit order. A stop-limit order has both a stop price and a limit price, and the order is only executed if the stock price reaches the stop price and a limit price is available for the trade. A trailing stop order, on the other hand, is converted to a market order when the price drops to the trailing stop price, meaning there's no limit price and it may not be filled at a specific price. 
   • Time in Force: You can choose whether the trailing stop order is valid for the current day ("Day") or good until canceled ("GTC"). GTC orders remain active for up to 180 days unless executed or canceled. 
   • Market Fluctuations: Keep in mind that trailing stop orders only trigger during regular market hours. 
6. Example:
   • Let's say you want to buy a stock trading at $100. You set a trailing stop order with a 5% trailing amount. If the price increases to $105, the trailing stop price will also move up to $99.75 (5% below $105). If the price then drops to $99.75, the trailing stop order will be triggered, and your buy order will be submitted as a market order. 
   • Alternatively, if you set a $2 trailing stop, and the stock is trading at $100, the initial stop price will be $98. If the stock rises to $105, the stop price will be $103. If the price then drops to $103, the order will be triggered and converted to a market order.