Market Intelligence › Basic Terminologies

TRAILING STOP LOSS

When the trade goes in favour, move the stop back and forth, so as to preserve the profit.

Published by The Retail Trader · JUL 31, 2026 · Risk Management

Trailing Stop Loss — Moving the stop back and forth when the trade goes in favor, so as to preserve profit.

WHERE THIS FITS IN

This term comes under Risk Management, in the section "TRADE-LEVEL RISK". Words inside a single trade:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Stop Loss
• Hard SL vs Mental SL
• Target
• Risk-Reward Ratio (RR)
• R-Multiple
• Entry
• Exit
• Breakeven Stop
• Scaling Out / Partial Booking
• Invalidation Level

To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

Back to Market Intelligence