Trailing Stop
A stop-loss that follows the price at a set distance as it moves in your favour — locking in gains — and only triggers if the price reverses by that amount. It never moves against you.
Appears in these guides
Related terms
Related lessons
Position Sizing
The most important and most ignored decision in trading: how much to commit to a position. The percent-risk rule, the position-size formula that turns a stop into a share count, volatility-based sizing, and why how much you risk matters far more than what you buy.
Risk/Reward & R-Multiples
The framework that ties wins, losses and probability into a single judgement of whether a strategy makes money. The risk/reward ratio, thinking in R-multiples, the expectancy formula, and why a strategy that loses more often than it wins can still be highly profitable.
Ironclad Research provides educational content only. Nothing on this platform is financial advice, a recommendation, or an offer to buy or sell any security. Always do your own research and consider professional advice before making financial decisions.