// Definition
A trailing stop is a stop-loss that you move in the direction of your trade as price moves in your favour, locking in more profit over time.
Explained simply
In a long trade, you might move the stop up below each new higher low. If the trend continues, the stop keeps rising; if price reverses, the trade closes with some profit locked in.
Trailing stops let you stay in strong trends without guessing where the top will be.
Tip
Trail the stop behind structure, such as below higher lows, rather than a fixed distance that ignores the chart.
For education only, not financial advice. Trading is risky and you can lose money.