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Trailing Stop

A stop-loss that follows the position up: it sits a fixed percentage below the highest price reached and ratchets upward only, never down. Trailing stops let winners run while guaranteeing an exit a set distance from the peak. The width is the whole game — tight trails exit on noise, wide trails give back more at the end.
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Related terms

Stop-Loss OrderA resting order that triggers a sale when price falls to a set level, …Take-Profit OrderA resting sell order at a level above the entry price that locks in a …

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