A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

If the stock's market price moves lower, the trailing stop will not move. The concept is that you can merely set the maximum amount that a stock can move lower to trigger the stop.

Once the market price of the stock touches or falls below the trailing stop price, the stock is then sold at market to the next willing buyer.

They are virtually guaranteed to take you out of a position. Each little up tick in a stock's price will pull the stop loss order higher and higher, eventually triggering the stop on the next downward tick of the stock's market price.

See also floating stop.