Trailing Stop
Definition
A dynamic stop-loss order that moves with favorable price action to lock in profits while allowing room for the trade to run.
Example
A 50-pip trailing stop follows the price upward in a trending market.
Related Terms
Frequently Asked Question
What is a Trailing Stop?
A Trailing Stop is a dynamic stop-loss that automatically moves in the direction of a profitable trade, locking in gains as price advances. It only moves in the favorable direction — never backward — protecting profits while letting winners run.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.