Essentially, if you don't want to sell a stock for less then $7.17, and the stock is currently trading at $10.17, you would set the Trailing Stop $ Value amount to $3.
Here's what eTrade says about Setting trailing stop values
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With a trailing stop order, you set your stop as a distance in either points or percent from the stock's current bid or ask price (the bid price for sell orders and the ask price for buys). This is in contrast to a regular stop order, where the stop is set as a fixed price.
If you are placing a stock order with a trailing stop, on the order entry ticket for stocks, select either of the following from the Price Type menu:
Trailing Stop $ – to enter your trailing stop value in dollar terms
Trailing Stop % – to enter your trailing stop value in percentage terms
In the Stop Value field, enter your trailing stop value (the maximum distance you want your trailing stop to be from the current bid or ask price). Please keep in mind that this value should be entered as a percentage if you selected Trailing Stop % as your price type, and as a dollar figure if you selected Trailing Stop $.
Note:
Your trailing stop value – whether entered in points or percent – must be at least $0.10 ($0.05 if the stock is trading below $5).
The following chart shows where you'll be setting your trailing stop in relation to the stock's current price.
| Order Type |
Placement of Trailing Stop |
| Buy |
Above the current ask price |
| Sell |
Below the current bid price |
| Sell short |
Below the current bid price |
| Buy to cover |
Above the current ask price |
After you submit your trailing stop order, the stop price will adjust itself automatically, following (or "trailing") the stock's bid or ask price, but moving only in a direction favorable to you, in accordance to the parameters you defined for your order. You can keep track of the current stop price via the View Orders page.
All trailing stop orders are held at E*TRADE Securities until triggered. Once the bid or ask crosses the current stop price, the order is triggered and sent to the market center as a market order and then executed at the prevailing market price.