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web3glossarytrailing stop order
Trailing Stop Order

Summary

A trailing stop order is a type of order used in trading that sets a stop price at a fixed amount below the market price with an adjustment mechanism for rising prices.

Detailed Description

A trailing stop order allows traders to set a stop-loss order that moves with the market price. As the price increases, the stop-loss price rises, but if the market price drops, the stop-loss stays at its last set level. This mechanism is designed to secure profits while still giving trades room to fluctuate with market movements. When the market price reaches the trailing stop price, the order becomes a market order and is executed.

Category
Trading Strategies
Synonyms
Trailing Stop
Dynamic Stop Order
Trailing Stop Loss

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Automated Trading Systems

Used in strategy development for automated trading systems where execution speed is crucial.

Industries:

Finance
Cryptocurrency

Platforms:

Binance
Coinbase Pro
Risk Management

Helps traders manage risk by allowing them to set a safety net under their position as prices rise.

Industries:

Finance
Investing

Platforms:

Kraken
Bitfinex
Automated Trading Systems

Used in strategy development for automated trading systems where execution speed is crucial.

Industries:

Finance
Cryptocurrency
Forex

Platforms:

Binance
Coinbase Pro
MetaTrader
Risk Management

Helps traders manage risk by allowing them to set a safety net under their position as prices rise.

Industries:

Finance
Investing
Stock Market

Platforms:

Kraken
Bitfinex
E*TRADE
Long-term Position Management

Used by long-term investors to protect gains over extended periods without constant monitoring.

Industries:

Wealth Management
Investing

Platforms:

TD Ameritrade
Charles Schwab

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