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

• Stop loss

• Position

For more information see Trailing stop Loss on CMC Markets.