Trailing stop
TradingA stop that follows the price at a fixed distance, locking in gains.
Example
10% trailing on a run from 50,000 to 60,000: stop sits at 54,000.
Common misconceptions
- That it guarantees profit (it locks a % of it, gaps excepted)
A stop that follows the price at a fixed distance, locking in gains.
10% trailing on a run from 50,000 to 60,000: stop sits at 54,000.