That’s what i want to know too. Ii have tried it a few times and it never did what i expected. As soon as the stop price is reached it triggers and fills. No matter if the limit is above or below the stop price. No trailing can be observed. Could be me being too dumb or the algo is not working as expected..

It’s just very rare that the market should gap down suddenly drops down the limit price. You are quoting a very rare example to explain this order type. So many people pointed this out I don’t understand why IB is still trying to give an absurd explanation to justify this. AND there were some wrong answers to the quiz in previous courses.

A sell limit order always executes at the limit price or higher. With a Trailing Stop Limit, the stop price triggers the order, and then a limit order is placed at your specified price. The examples show the market falling to the stop and then to the limit level before filling at the limit or better—not below it. If the market gaps down past your limit, the order may not fill because you won’t accept worse than your limit.
Hope this helps clarify the difference!

Hi John, thank you for reaching out. The scenario described is not a standard Stop Limit order—it’s a Trailing Stop Limit order, which works differently. In a Trailing Stop Limit:

The stop price triggers the order when the market reaches that level.
The limit price is set based on the trailing amount and adjusts dynamically as the market moves.

For example:

If the stop price is triggered at $113 and the trailing amount sets the limit at $112, the order will aim to sell at $112 if the price continues to decline.
If the price rises by $0.50 and the trailing amount is $1, the new limit becomes $112.50. If the stock then declines, the order will execute at $112.50.

This adjustment mechanism is what differentiates a Trailing Stop Limit from a regular Stop Limit order, which does not change once placed. The purpose is to help capture a better price if the market moves favorably before the stop is triggered. We hope this helps.

Hi, thank you for reaching out. For more information on the Order Type, please review our webpage: ../../../../en/trading/ordertypes.html?m=trailingLimitModal

We hope this helps!

Hi Nick, thank you for asking. Yes, Trailing Stop Limit orders execute outside of RTH. For orders to work overnight, you must enable Outside RTH in the order ticket. If the product supports overnight trading, the toggle appears under “Time in Force”. We hope this helps!

Hi Yechiel, thank you for reaching out. A Trailing Stop Limit order is designed to allow an investor to specify a limit on the maximum possible loss without setting a limit on the maximum possible gain. A “Sell” Trailing Stop Limit moves with the market price and continually recalculates the stop trigger price at a fixed amount below the market price based on the user-defined “trailing” amount. The limit order price is also continuously recalculated based on the limit offset. As the market price rises, both the stop price and the limit price will rise by the trail amount and limit offset respectively, but if the stock price falls, the stop price will remain unchanged. When the stop price is hit, a limit order will be submitted at the last calculated limit price. Please review this FAQ for more details on the Order Type: https://arclightcapital.cc/faq?id=110199999

We hope this helps answer your question!

Please direct all future communications to the secure message center only. We do not handle complaints on ARC Campus. We would appreciate the opportunity to turn around your experience.

I agree with Anonymous and explaination from ARC herein yet again contradict the Campus Course and what is currently happening. I spent an hour over the phone with someone who does NOT understand the difference between TRAILING STOP (TS) and TRAILING STOP LIMIT (TSL), which per my experience and in agreement with Anonymous just sells once Stop triggers which makes STL behaving just like TS. I am filling a complain. I should still be in a trade and in profit but this TSL sold (twice) and – I am sorry – but it does not work as per the video and/or your reinforcing the website explaination when repling the following: Arclight Capital September 2, 2025 at 5:08 pm Hello, thank you for reaching out and we apologize for the delayed response. The order remains dormant until the stock price reaches the $113 trigger point. Once triggered at $113, it converts to a limit order that will execute only at $112 or better. In this scenario, after the price hit $113 (activating the trigger), it quickly fell toward the $112 limit price. However, before reaching $112, the price reversed direction and moved upward. Since the stock never reached the $112 limit price after being triggered, no execution occurred. We hope this helps! PLEASE DO SOMETHING ABOUT IT!

ARC, please correct the training material because CW and Chris Scott are correct. And now I am the third person pointing this out. When the Stop price of $113 is triggered, the Limit Order to sell at $112 is made active, but since selling at $113 is a better price compared to selling at $112, that means the Limit Order to sell at $112 will be filled right away. Setting the Stop Limit price to be under the Stop Price automatically transforms the Stop Limit order into a Stop Order. The entire video did this and it is wrong way to use Stop Limit order. The correct way to use a Stop Limit order is to set the Stop Limit price to be slightly higher than the Stop price, which aims to minimize slippage that comes with a market order during sudden price drop, but it carries with it a risk that the sell limit order might not be filled, after the Stop price is triggered.

Hi, thank you for asking. Yes, trailing stop limit orders can be used for stop positions at ARC. For more information on our Order Types, please review our webpage: https://spr.ly/IBKR_OrdersCampus

We hope this helps!

Concerning the trail parameter I do understand that it is value that the stop price will step up, on selling order, does it also refer to the stock price move that will trigger the stop price move ? Second what is the minimum trail value?

Charles you are correct. Thanks. I don’t know why they wont fix the video. Too busy I guess.