Example 1
Let's assume the current buying price of ABC plc shares is 352p. You want to make an investment because you have a positive feeling about the long-term profitability of the shares but are waiting for the share price to fall from its current level, although to what price you are unsure, before making your purchase. You therefore decide to place a Trailing order with a minimum trailing value of 13p and a maximum trailing value of 18p. After placing your order the share price falls gradually before beginning to rise again. If the share price rises from its lowest level by at least 13p your order will be triggered for dealing and the maximum price that will be paid for your shares is the lowest buying price plus 18p. If the share price does not rise by at least 13p from its lowest level then your order will remain active and track any subsequent downward movement in the share price.

Example 2
You have a holding in XYZ plc shares. The current selling price is 220p but you have decided not to sell at this price because you feel the shares may increase further and you would then regret having already sold them. In order to capitalise on future share price increases you decide to place a Trailing order with a minimum trailing value of 5p and a maximum trailing value of 10p. This initially creates a dealing band between 210p and 215p. If the price fails to rise above 220p before your order expires then your dealing band will remain fixed at its initial level, although your shares will only be sold if the share price is within your dealing band. If the price rises to 240p then your dealing band will be re-adjusted to 230p – 235p and so on. If the price rises and then falls, but by an amount less than your minimum trailing value, your shares will not be sold and the order will continue to track any upward movements in the share price.