Trader's Glossary

Trailing Stop

Trailing stops are dynamic stop-loss orders that can be set to shadow the market price, staying within a certain predefined pip range so as to secure profits when price action moves in a trader’s favour. A trailing stop can be set to become active after the market moves by a predefined number of pips at which point it will begin to follow the market price, always remaining within in certain number of pips from the current price.