Trailing Market if Touched
A market buy order that has an adjusting activation trigger price linked to the current trading price.
This order type reduces its market order trigger price commensurate to current trading prices. In other words, the trigger price can fall, if the trading price falls below the price it was originally deployed at, but the activation price cannot rise as long as the order remains active.
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 used
Jacob 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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