Dictionary
Thesaurus
Encyclopedia
Translator
Web
Related Searches
Nearby Words

trailing stop

 - 2 dictionary results
Online Stock Trading
Voted Barron's Best Online Broker 4 Years in a row!
optionsXpress.com
Trailing Stop Software
Online trailing stop tools help you know when to sell.
exitpoint.com
Financial Dictionary

Trailing Stop

A stop-loss order that is set at a percentage level below (for a long position) the market price. The price is adjusted as the price fluctuates.

Investopedia Commentary

This is such a useful tool, yet many fail to use it. Using a trailing stop allows you to let profits run while cutting losses at the same time.

Related Links

Trailing-Stop Techniques
The Stop-Loss Order - Make Sure You Use It

See also: Market Price, Parabolic Indicator, Stop Loss Order

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Online Stock Trading
Voted Barron's Best Online Broker 4 Years in a row!
optionsXpress.com
Trailing Stop Software
Online trailing stop tools help you know when to sell.
exitpoint.com
Financial Dictionary

trailing stop

A stop order to sell (or to buy) a security in which subsequent stop orders are placed at progressively higher (or lower) levels as the stock price increases (or decreases). For example, an investor may purchase shares of Union Pacific Corporation at $60 and simultaneously place a stop order to sell the stock if it drops to $58 or below. If the stock rises to $63 without going through the $58 stop price, the investor raises the stop price to $61. Thus, the stop price trails the market price of the stock.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
Cite This Source
Search another word or see trailing stop on Thesaurus | Reference
FacebookTwitterFollow us:
Partner Sites:
Ask AnswersEviteExpediaHotelsHotwireLife123LiveDailyMy Way