Trailing Stop Definition
Trailing Stop means a stop-loss order set at a level compared to the market price. The trailing stop price is adjusted as the market price fluctuates. A sell trailing stop sets the stop price below the market price. When market price rises, the stop price is increased, but if the stock price falls, the stop loss price doesn't change. This allows the investor to set a limit on the loss, but not limiting the profit. "Buy" trailing stop is mirroring the sell trailing stop orders, and is useful in case the market price tends to decrease.