Trailing Stop Loss
5paisa Research Team
Last Updated: 01 Jan, 2025 10:35 AM IST

Content
- What is Trailing Stop Loss?
- How Does a Trailing Stop Loss Work?
- Features of Trailing Stop Loss
- Trailing Stop Loss Example
- When Can Trailing Stop Loss be Used?
- Advantages of Trailing Stop Loss
- Disadvantages of Trailing Stop Loss
- Conclusion
Trailing Stop Loss is an advanced trading strategy that automatically adjusts to market volatility, thereby empowering traders to protect their profits and limit potential losses. This dynamic strategy, unlike conventional stop-loss orders, adjusts with market fluctuations, locking in profits as a security's price ascends and stemming losses when it falls.
In essence, the Trailing Stop Loss strategy serves as a robust safety net, protecting traders from dramatic market downturns and preserving their profits. Let's dive deeper into its functionalities, features, and potential pitfalls.
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