What's a trailing stop order?

A trailing stop order is an order to sell an equity that is set at a fixed dollar amount or percentage below the market price—for a long position. The trailing stop price is adjusted as the price fluctuates. A trailing stop order can be placed as a trailing stop market order. When a trailing stop order is modified, the original Calculated Price is recalculated using the current market price.

Last updated July 2, 2020