May 25, 2023 - ChartAlert®

Trailing Stop Loss

The Trailing Stop Loss is a risk management tool that enables traders to capture gains while limiting potential losses in the market . . . It helps close out positions when the market moves against them, providing a level of protection and reducing the emotional component of trading decisions

1 minute

Introduction

A Trailing Stop Loss (TSL) is a popular order used in trading to help investors limit their potential losses while also potentially locking in profits. Essentially, a trailing stop loss is an order placed with a broker to sell a security if its price falls to a certain level below the current market price.