Trailing stop
Updated 2026-09-20
Definition
A stop loss that follows price at a fixed distance as the position moves into profit.
Why it matters
It protects gains and lets strong trends run, but a normal pullback can stop you out before the move resumes. It works better in clear trends than in ranges.
Practical example
You buy at 1.1000 with a 30-pip trailing stop: if price rises to 1.1100 the stop is at 1.1070.
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Educational content, not financial advice. Trading involves risk.