A trailing stop is simply a Stop-Loss Order which combines both risk management as well as trade management. Here, the stop loss trigger price “trails/moves” with the last traded price in one direction (moves up in case of Buy position or moves down in case of Sell position). This is useful when traders want to protect their gains in a position.
The purpose of a trailing stop loss is to limit an investor's potential losses by allowing them to exit a position if the market turns against them, while also allowing them to capture gains if the market continues to move in their favor.
Trailing stop losses are commonly used by traders and investors to protect their profits while allowing their positions to continue to benefit from favorable market conditions.
What is a Trailing Stoploss? Print
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