Trailing Stop-Loss

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Trailing Stop-Loss.

A form of stop-loss designed to keep profit coming (or prevent loss) as the price of a stock remains moving in an investor’s favor.  Generally opened at the same time as a trade, a long position would put a trailing stop-loss at a price lower than the current market price and for a short position, it would be placed above the market price.  They only move in one direction and are designed to lock in profit and protect from (or limit) loss.