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I'm assuming that "limit offset" just means "limit price". Help & How-to | Questrade

  • There is no maximum allowable spread between the limit offset and the trailing stop price for the U.S. markets
  • There is a maximum of 9% allowable spread between the limit offset and trailing stop price for CAD markets

Even if no official reasons are published, what are the pros and cons of Canada's cap?

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Stop buy orders are dangerous: you can overpay for a stock when it spikes up (partly from your and others' stop orders all kicking in at the same time), only to have it come back down when the flurry of buying subsides. To avoid this it is recommended that you have a limit on your order as well, so you control the maximum price that you are willing to pay. The drawback of course is that in some cases you will not be able to buy. You must decide where to put that limit price.

Canadian regulators think this recommendation is not enough, and require you to put your limit price reasonably close to the stop price. They feel that you should not buy something if it has already moved more than 9% past the price of your stop. They have substituted their judgement for yours, to try to protect the reputation of the market (and theirs). Flash crashes and price spikes make them look bad.

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