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A trailing stop is a stop order that tracks the price of an investment vehicle as it moves in one direction, but not in the opposite direction.
A trailing stop order is a variation on a standard stop order that can help stock traders who want to potentially follow the trend while managing their exit strategy. Here we explain trailing stop orders, consider why, when, and how they might be used, and discuss their potential risks.
A trailing stop loss is a stop order that executes as a market order, while a trailing stop limit will execute as a limit order. Using limit orders is a better way to get the price you want. Do Professional Traders Use Stop Orders?
A trailing stop order executes when the price of a security moves a percentage or dollar amount in a specified direction. Investors use trailing stop orders to protect gains.
The trailing stop/stop-loss combo eliminates the emotional component of trading, letting you rationally make measured decisions based on statistical information.
Narrator: A trailing stop order is a conditional order that uses a trailing amount, rather than a specific price like a normal stop order, to determine when to submit a market order. You can set the trailing amount in either points or percentages, and the order then follows or "trails" a stock's price as it moves up.
A trailing stop is a sophisticated stop-loss order used by traders to mitigate risk while benefiting from market trends. Its key feature is automatic adjustment, allowing for a flexible strategy in safeguarding gains and minimizing losses.
The trailing stop loss range. The trailing stop loss range is the distance between the trailing stop and the trade’s high (for long positions) or low (for short positions). For example, if a trader buys a stock at $50 and sets a trailing stop loss range equal to $20, he/she will see the trailing stop moving to the $60 level when price reaches ...
You can move your stop-loss order in the direction of the trade, using a trailing stop-loss to further limit your losses or protect your gains.
A trailing stop loss order adjusts the stop price at a fixed percent or number of points below or above the market price of a stock. Learn how to use a trailing stop loss order and the effect this strategy may have on your investing or trading strategy.