What is Trailing Stop?

A stop loss that follows price as the trade moves in your favour, locking in profit while leaving room to run.

A trailing stop is a stop loss that moves in the trade's favour as price advances, locking in progressively more profit while never moving backwards. It can be automatic — the platform trails price by a fixed distance in pips — or manual, where the trader moves the stop behind each new structural level, such as the most recent higher low in an uptrend. The goal is to stay in a trending move for as long as it behaves, while guaranteeing that a reversal cannot take back everything.

The craft is in the distance. Trail too tight and normal pullbacks stop you out of moves that continue for days; trail too loose and you give back most of the gain before the exit triggers. Structural trailing — behind swing points rather than at fixed pip distances — respects how price actually breathes, which is why it is generally the more professional choice. A trailing stop replaces a fixed take profit when the plan is to ride a trend rather than exit at a predefined objective.