Trailing Stop
A trailing stop is where a stop loss order is adjusted as the market moves in the trade's favor. For instance, if you hold a long position at 140 and place your initial stop at 139.50, if the price rises to 140.25, your stop loss is reduced to 139.75. Your stop loss level will rise as the price increases, protecting your position against a price reversal. Trailing stop orders help forex traders extend profits in strong trending markets.