Trailing Market if Touched
A market buy order that has an adjusting activation trigger price linked to the current trading price.
A trailing market if touched order can be used when one wishes to acquire an asset, but one thinks the price might go lower than it’s presently trading at. The main downside is that the activation threshold might be triggerable with momentarily high volatility.
How it is usedJacob is seeking to acquire AXO tokens, yet he’s thinking that the macro picture isn’t looking particularly positive, which will likely affect the price of the tokens. Hence, he places a trailing market if touched order, with a delta of 5%. Thus, if the token price goes to $10.5, from its current value of $10, then the market order will activate. If, on the other hand, the price falls, then the buy market order trigger price will fall proportionally as well. As such, at most, he pays a premium of 5%, but if he is correct about prices trending lower, then he will get a much steeper discount, thus potentially buying the same amount of tokens he originally wanted, but cheaper.
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