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Trailing stop

A stop that moves up as the price rises, staying a set distance behind it.

Orders & TradingBeginner

Definition

A trailing stop of 10% follows the highest price reached and sells if the price falls 10% from that peak. It can lock in more of a gain as the price rises, and it never moves down.

Watch out for

In a choppy market a tight trailing stop can trigger on ordinary noise.

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