If I want to buy a stock lower than the current price is that a " trailing stop"?

Question

For example a stock last traded for $10/share on Friday and Monday morning I bid $9/share. Is that a trailing stop?

Answer 1

No. That's a limit order. A trailing stop would be a sell order set to execute below the current market price.

Answer 2

The first 2 responses are not entirely correct. They describe a stop loss order (you stop your losses by selling at a preset price). A trailing stop is A stop-loss order set at a percentage level below the market price - for a long position. The price is adjusted upward ("trails" along X% behind) as the stock price increases.

Answer 3

No. A trailing stop is a tool to get you out of a trade once you have already purchased if it starts to go down rather than continue to increase.