An augmented version of the normal Stop Loss that automatically follows market price as it goes in your favor while maintaining a steady distance, but does not move if the price starts going against you. This can be used to maximize profits if set in the green or minimize drawdown otherwise.
Example: In the case of a Long position, If the market price rises, the trailing stop will rise with it, maintaining the set distance. If the asset’s price starts to fall, the stop loss doesn’t move down. If the price hits the stop loss level, it triggers a sell order to minimize losses.
