Glossary › trailing stop
Trading glossary · risk
trailing stop
A safety exit that moves up behind your winning trade, locking in more profit as price climbs.
The fuller meaning
A stop that follows price in the trade's favour by a rule, such as behind each new swing low or a multiple of ATR, and never moves back. It locks in gains and lets winners run, often after a partial exit, but tight trailing stops get hit by normal noise.
trailing stop.
Related words
1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve