Trailing Stop

Risk Management

A dynamic stop-loss that moves in the direction of the trade as price moves favorably, locking in profits while allowing the trade to continue. Trails by a fixed amount, percentage, or ATR multiple.

Related Terms

Stop-Loss

An order to exit a position when the price moves against you to a predetermined level.

ATR (Average True Range)

A volatility indicator that measures the average range of price movement over a specified period, accounting for gaps.

Exit

The price and moment at which a trader closes a position.

Learn More

Order Types Demystified

Level 1: Foundation · 18 min

Stop-Loss Strategies

Level 4: Risk & Money Management · 22 min

Exit Rules: Taking Profits and Cutting Losses

Level 5: Building a Strategy · 22 min