Trailing stop
TradingDefinition
A stop-loss order that adjusts upward as the price rises (for a long position), but doesn't move down. Locks in gains as a position appreciates while still allowing further upside.
Set as a fixed dollar amount or percentage below the current price. A common rule: trail 10-15% on long-term equity holds. Triggered by sharp drops, then converts to a market order.
Set as a fixed dollar amount or percentage below the current price. A common rule: trail 10-15% on long-term equity holds. Triggered by sharp drops, then converts to a market order.