Trailing Stop Loss
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| Using a trailing stop loss allows the trader to maximize profits on a stock as it continues its trend. It is analogous to raising or lowering a ladder to the next floor as a stock moves in that direction. | ||
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Additional Comments:
A trailing stop loss will follow behind the closing price of the stock each day, ratcheting up as the stock/option price climbs.
A trailing stop will only reset higher and will not move down. |
Related Terms: | ||
Trailing Stop Trailing stops are designed to follow the market price of a stock by a percentage amount ... Stop Market This type of stop loss order is known by various names, such as "stop," "stop loss," ... Stop Limit This is an order that says once the stock's market price touches or goes below the ... | ||
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