What is a trailing stop order?

A trailing stop order is a type of stop-loss order that moves with the market price. It is designed to lock in profits by allowing the price to move in the trader’s favor while protecting against significant losses if the market reverses.

How does a trailing stop work?

A trailing stop order adjusts the stop price as the asset’s price moves in the trader’s favor. If the price moves higher, the stop price moves higher, allowing the trader to lock in profits. If the price moves against the trader, the stop price remains fixed, and the order is executed once the asset reaches the stop price.

Is a trailing stop the same as a regular stop-loss order?

No, a regular stop-loss order is a fixed order that is triggered when the asset hits a predetermined price. In contrast, a trailing stop order moves with the price and allows traders to benefit from favorable price movements while protecting against reversals.

Current Article

0%

Complete

All Articles

0%

Complete

Stop Loss

What is TRAILING STOP ORDER?

TRANSACTION FEES

Transaction Fees include additional broker-imposed charges for trade execution, such as exchange fees or platform usage fees.

TradeReply is an advanced analytics suite designed for crypto and stock traders to input historical trading data and leverage powerful visuals, graphs, and metrics to optimize and develop effective trade strategies with real-time insights.

Current Article

0%

Complete

All Articles

0%

Complete

What is TRAILING STOP ORDER?

TRANSACTION FEES

Company

Partners

Community