> For the complete documentation index, see [llms.txt](https://lit.gitbook.io/lit-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lit.gitbook.io/lit-docs/trading-guide/trade-on-chart/trailing-stop-loss.md).

# Trailing Stop-Loss

Setup a Trailing SL that automatically follows market price to capture more value!

## Place a Trailing SL

<figure><img src="https://2118443718-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fi0mGSGgtjV3q9tdhdmeG%2Fuploads%2FIeHqYz80kevQzAO7Mszu%2FTrailing_SL1-ezgif.com-video-to-gif-converter.gif?alt=media&amp;token=3c339842-a146-440f-ac6c-e627c4a770fb" alt=""><figcaption></figcaption></figure>

* Click **Trailing** in the trading module to pull up a draft line on the chart.&#x20;
* Edit the size of the order by dragging the bar.
* Drag the draft line to the desired price point and submit the order.

## What is a Trailing SL?

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 <mark style="color:green;">**Long**</mark> 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.