A trailing stop order is a dynamic risk management tool that helps protect profits while allowing a trade to remain open as the market moves in your favour. Unlike a standard Stop Loss, a trailing stop automatically adjusts as the price moves, maintaining a set distance from the current market price.

 

If the market moves in your favour, the trailing stop follows it. If the market reverses by the specified distance, the position is automatically closed, locking in profits or limiting losses.

 

Please note that trailing stops operate on the trading platform and require your platform to remain open and connected to the internet to function correctly.