A special type of stop-loss order that moves in your favor as the market price moves, locking in gains while still letting profits run. A trailing stop is set a certain distance (in pips or percentage) from the current price and “trails” the price as it advances, only activating if the price reverses by that distance. For example, a 50-pip trailing stop on a long trade will continually reset the stop level 50 pips below the peak price reached; if the price falls 50 pips from its high, the stop triggers and the position closes, securing the profit up to that point.

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