Question
What is a "Trailing Stop" order?
Answer
A Trailing Stop order is designed to protect gains by enabling a position to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the position if the price changes direction to a degree that makes the stop order marketable. The amount by which the trailing stop follows the market is specified by the trailing amount while the amount of slippage protection is controlled by the limit offset, both user-specified.