What Is Trailing stop loss?

A trailing stop loss is a special order type or a trigger parameter, which will keep updating the position’s stop loss dollar limit as the market price moves.

  • Trailing stop loss is set on a position when opening it

  • Trailing stop loss is usually specified as % of the market price

  • Trailing stop loss dynamically updates the position’s stop loss upwards if the market price moves upwards

  • If the market price moves downwards, the highest and the latest trailing stop loss mark is triggered

  • Trailing stop loss allows you to lock in profits in raising markets

See also

For more information see Trailing stop Loss on CMC Markets.