Definition of Trailing Stop
A dynamic stop loss that automatically moves in your favor as the price moves in the direction of your trade. For example, a 30-pip trailing stop follows the price upward (for a buy) and stops you out if the market reverses by 30 pips from its peak.
At a glance
Term
Trailing Stop
URL slug
trailing-stop
Category
Orders & execution
Short answer
A dynamic stop loss that automatically moves in your favor as the price moves in the direction of your trade.
Deep dives
/blog/how-to-set-stop-loss-take-profit-forex/, /tools/lot-calculator/, /blog/forex-risk-management-guide/
Example
Example: a buy limit below market does not guarantee a fill if price never prints at your limit. Choose “Trailing Stop” based on price priority versus fill priority.
Common mistake
Common mistake: using “Trailing Stop” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Trailing Stop” page and reopen it when reading broker specs so definitions stay consistent.
Related deep dives
Practice tools:
Related terms
FAQ
A dynamic stop loss that automatically moves in your favor as the price moves in the direction of your trade.
Order type and fill behaviour around “Trailing Stop” decide whether entries and stops execute near the price you planned.
Common mistake: using “Trailing Stop” as loose slang while your broker/platform specification defines it more narrowly.