Trailing Stop Loss

A trailing stop loss is a dynamic exit order that moves in tandem with the market price as it moves in the direction of the trade. Unlike a static stop loss, which remains at a fixed price level, a trailing stop adjusts its trigger point based on a set percentage or absolute value from the current market price.

If the market moves favorably, the stop loss trails behind, protecting accumulated profits. If the market reverses and hits the trailing stop level, the position is closed, locking in the gains achieved up to that point.

This tool is particularly effective for capturing large trends in cryptocurrency markets without needing to manually adjust orders. It allows for flexibility while providing a safety net against significant reversals.