The term Trailing If-Touched refers to instructions sent to a broker to buy or sell securities when the market moves in an unfavorable direction and reaches the limit price. Trailing If-Touched orders are conditional orders, which can be used to both buy and sell securities.
Also referred to as Trailing Market-if-Touched orders, a Trailing If-Touched order is one of several types of contingent orders, which means an event must occur to trigger the order. This type of order establishes a trigger value that is a specific distance from the market price of the security. The trigger value then adjusts relative to the market when the price of the security moves in a direction that favors the trader.
Both the buy and sell Trailing If-Touched orders are placed on the same side of the market as limit orders, for example:
All-or-None, Fill-or-Kill, Good-Til-Canceled, Immediate-or-Cancel, National Best Offer, National Best Bid, market order, limit order, day order, One-Triggers-the-Other, One-Cancels-All, Good-Til-Date, At-the-Opening, Market-on Open, Market-on-Close, Time-in-Force, Market-if-Touched